Chapter: Leading Medicare's Transformation Through Innovation and Customer-First Care
Today, we’re very excited to announce that we’ve tripled down on our partnership with Chapter, leading their oversubscribed $50M Series C as they build the fastest growing platform dedicated to helping patients navigate, simplify, and get the most out of their Medicare coverage.
“Out with the old, in with the new.” This ethos has long driven innovation in this country. For many of us, stepping into the future is the most exciting part of life, but as we get older, this same feeling can quickly become a daunting reality. Whether it’s in financial services, healthcare or government benefits, older adults in the U.S. are too often an afterthought when it comes to the arc of technology that excites so many builders.
That’s why we’re so thrilled to work with a team that puts them at the center of these considerations. When we first met Cobi Blumenfeld-Gantz and Corey Metzman at Chapter, they’d just finished helping their parents through the Medicare enrollment process. Not only did they realize how hard it was, it quickly became clear that their parents weren’t alone in this experience.
Every year, millions of seniors aged 65 and older, struggle to get the care they need with the resources that seem to be available to them. The tools are antiquated, the incumbents are entrenched and misaligned with their interests, and the problem isn’t the five-alarm fire in the zeitgeist that it deserves to be. With all of this context, it’s downright inspiring to see some of the best founders and builders we’ve encountered take this challenge personally, and make sure the rest of the country does too.
Chapter has designed state-of-the-art technology that delivers a best-in-class experience at scale. Over the past three years, this team has invested heavily to build tooling from the ground up for their in-house brokerage advisors. It has the most robust index of Medicare Advantage HMO, PPO, and PFFS organizations and stand-alone prescription drug plans with a Medicare contract. Seniors can now get fully customizable packages (provider mapping and drug pricing), which increases savings and maximizes their benefits.
Chapter has coupled this with a dedicated team of in-house Medicare advisors who leverage bleeding-edge software, providing holistic, fiduciary-type Medicare guidance to guarantee optimal healthcare coverage. Ultimately, this has enabled them to redesign the incentive structure in Medicare and implement one of the only true customer-first models in the industry. When you take this technology advantage and pair it with a world-class services mindset, seniors leave with an experience vastly superior to the status quo.
The fact that Chapter sits in the middle of a vibrant partner ecosystem of insurance carriers, health plans, and financial institutions gives it even more influence. They’ve managed to architect a win-win model where all parties are aligned to deliver better quality care, save end patients money, and drive more revenue across the board.
In actively growing this distribution network, they’ve realized some absurdly impressive growth, with ARR quadrupling year over year and 90% user retention (2x that of typical public brokerages). Altogether, this makes them the fastest growing and most valuable Medicare brokerage in the U.S. only four years into their existence. And they’re only accelerating.
Chapter’s solutions couldn’t come at a more urgent time. The Medicare industry is now littered with poor incentives and gray-area kickbacks. And while most Medicare-focused companies fear regulatory change, the Chapter team welcomes it. In fact, they’re leading the charge.
Last October, Cobi, Chapter’s CEO, was the only Medicare broker invited to testify at the Senate Finance Committee's hearing on deceptive practices in Medicare. As a direct result of his remarks, the Senate sent letters to the Centers for Medicare and Medicaid Services (CMS) and legacy brokerages urging better oversight of Medicare marketing practices. Then, just last month, CMS issued new rules in this direction, representing the most significant change in over a decade to how Medicare will reach consumers.
This industry-wide transformation is a byproduct of Chapter's mission and underscores the company's commitment to prioritizing beneficiaries' interests above all else. Needless to say, this sets them far apart from traditional Medicare advisors and has strongly resonated with growing demand for transparent and unbiased guidance. Most importantly, this is just the first chapter in their story… much more is to come!
We’re happily concentrating capital alongside our friends at Susa Ventures, Addition, and Narya Capital. Together, we’re thrilled to support a company that’s genuinely harnessing industry tailwinds to drive better outcomes for overlooked seniors in this country. At the end of the day, Chapter has one core philosophy that will be the reason for its continued success: The customer's needs are the only priority. We agree.
P.S. If you’re a passionate builder looking to help pull Medicare into the future, this is an opportunity you don’t want to miss. Check out Chapter’s open roles.
Let’s go faster, together!
