The health care system in the U.S. remains a confusing landscape, which is creating all sorts of new business opportunities. FlexMinder, which aggregates and automates the reimbursement process for healthcare flexible spending accounts, believes its software can help solve an important piece of the health care puzzle.
And some investors agree. FlexMinder, a 2011 graduate of TechStars Seattle, just raised $1.4 million in funding from Founder’s Co-op, WRF Capital and others. The company had originally targeted $600,000.
“The response from our customers has been overwhelming,” said CEO Lowell Ricklefs. “We get immediate CEO attention because our digitizing of their manual paper healthcare processes reduces their costs by up to 50 percent. And their customers’ satisfaction drives more revenue.”
Ricklefs is the former chief operating officer at Toluna, and former chief revenue officer at GMI. FlexMinder says that it has commitments from administrators with more than 260,000 participants. Flexible spending accounts allow employees to save money by putting pretax dollars — up to $2,500 for healthcare and $5,000 for childcare — aside to be spent on qualified items such as child care, insurance deductibles, co-pays at the doctor, prescription drugs, eyeglasses, orthodontic braces and more.
FlexMinder’s software automates the reimbursement process for individual’s healthcare claims. Consumer can see their healthcare claim information via a single portal.
Here’s an overview of how it works: