Chapter, a Medicare advisory firm, has landed $42 million in a Series B funding round, it announced Tuesday.
The investment was led by Addition, along with participants Narya Capital, Susa Ventures, Maverick Ventures, XYZ Venture Capital, Core Innovation Capital and Health2047 Capital Partners. The company plans to use the new capital to expand its team (expecting to fill 70 new roles this year) and improve the customer experience.
“We look forward to supporting the Chapter team as they continue to minimize the complexities of Medicare and provide personalized experiences for older Americans seeking the right coverage,” said Jason Schneider of Addition in the announcement.
To date, the company has raised more than $61 million, with the last round happening in September when billionaire entrepreneur Peter Thiel joined the company’s board of directors.
"Before Chapter, those navigating Medicare faced two bad options: work with a traditional broker, or try to navigate the maze alone,” said Chapter’s CEO, Cobi Blumenfeld-Gantz, in the announcement. He said traditional brokers follow financial incentives (commissions) to make recommendations that are not necessarily in their clients’ best interests, and Medicare.gov and other resources available to consumers are inadequate in providing recommendations. “We’re thrilled to accelerate our ability to serve even more Americans with the support of this funding."
What sets Chapter apart from others on the market is its compensation model, the company claims, where what advisers make does not depend on specific plan recommendations or choices. That way, the company strives to ensure its work is genuine and ethical. Chapter also partners with Palantir on its tech platform, which integrates the data on all Medicare plans and allows its advisers to make the most informed recommendations, Blumenfeld-Gantz has said.
The company has expanded recently, opening a second office in Phoenix in October and creating 50 new jobs. The company’s Medicare advisers are now also licensed in every state.
Palantir and Chapter partner together on the company’s tech platform, which advisers use to advise clients on their coverage.