Fortuna Health, a platform for navigating Medicaid and government coverage, has scored $18 million in Series A funding.
Andreessen Horowitz led the round, with participation from Y Combinator and founders and executives from Abridge, DoorDash, Hex, One Medical, Oscar Health, Scale and Vanta.
WHAT IT DOES
Fortuna partners with health systems and managed care plans to help patients and members get through the Medicaid enrollment and recertification processes.
The company's technology aims to address what it calls the "fragmented nature of public benefits administration."
For example, each of the 56 Medicaid programs in the U.S. and territories has its own eligibility rules, documentation standards and renewal timelines.
According to Fortuna, it consolidates those variations into one interface for consumers, enabling them to manage eligibility, applications, recertifications, appeals, updates and state-required actions.
The company will use the funds to invest in AI and automation, developing features to respond to new federal policies, such as work requirements.
It will also use the funding to expand into new states and scale its infrastructure.
"Medicaid’s infrastructure is long overdue for modernization," Nikita Singareddy, CEO and cofounder of Fortuna Health, said in a statement.
"Access should not come at the expense of integrity or efficiency. We are building the infrastructure to ensure the Medicaid coverage experience is reliable, efficient and designed around the needs of today’s consumer."
MARKET SNAPSHOT
As of January 2025, 71.4 million people were enrolled in Medicaid, according to preliminary CMS data. An additional 7.3 million were enrolled in a Children’s Health Insurance Program (CHIP).
Combined, the two programs covered nearly 41.4 million adults and 37.4 million children, representing approximately 23% of the U.S. population.
Other companies in the Medicaid space include Lynx, which in February announced an oversubscribed $27 million Series A funding round.
Lynx is an API-first fintech platform that manages healthcare payments and administration.
The company's platform enables health plans, financial institutions and benefits administrators to integrate a suite of healthcare financial accounts and services into their existing user experiences.
The company used the funds to scale its operations and accelerate growth in the areas of Medicare Advantage supplemental benefits, Medicaid value-added benefits, individual coverage health reimbursement arrangements, and consumer-directed health account administration and compliance capabilities.
Brave Health, which focuses on the Medicaid market, provides virtual therapy, psychiatry and medication management for mental health concerns and substance use disorders.
In 2022, Brave scooped up $40 million in Series C funding.
