Healia, a Columbus, Ohio-based healthtech company, has raised $14M in Series A funding led by 111° West Capital. The round is part of an $18M total raise with participation from Y Combinator, First Round Capital, Pioneer Fund, GoAhead Ventures, and North Coast Ventures. Healia's Total Care Option (TCO) enables employers to reimburse employees for out-of-pocket costs when they enroll in a spouse's health plan instead of the company's. The capital will expand sales, engineering, and operations teams.
Rising Employer Health Costs Spur Innovation
The timing comes amid escalating employer healthcare expenses, with premiums rising 7% in 2026. Take Command Health raised ~$14M in Series A funding in 2021, while Liferaft secured $11M before its acquisition. Healia's spousal HRA focus targets a specific inefficiency where dual-income households pay for redundant coverage.
Dual-Income Households Face Duplicate Costs
Nearly 30 million dual-income households in the U.S. often carry coverage through two employers without coordination tools. Spouses on employer plans cost 36% more per member and drive higher utilization. Current solutions leave families paying twice for overlapping benefits while employers absorb unpredictable high-cost claims. Healia reports that its platform has already facilitated $33M in additional coverage for families.
AI Tool Compares Spousal Plans Side-by-Side
Healia built an AI-powered Decision Support Tool that analyzes both spouses' health plans in under 2 minutes to reveal true household costs. The TCO structure then reimburses copays, coinsurance, deductibles, and premiums via an HRA when employees choose a spouse's plan. This differs from broad HRA administrators like Take Command Health or Benepass, which offer general-purpose tools without spousal optimization or automated claims handling that processes 95% of claims within 48 hours.
As founder Priyang Shah noted:
"In 5 years, picking a health plan will work the way it should have all along. Every family will see both plans side by side, know exactly what each one costs them, and get paid back for choosing well."
Healthcare-Focused Investors Signal Sector Bet
The lead investor 111° West Capital focuses on healthcare enterprise software and was joined by Y Combinator and First Round Capital, which has deep experience in benefits platforms through its Gusto investment. North Coast Ventures adds Midwest healthcare IT expertise. This syndicate validates the thesis that employers need targeted tools to manage dual-income family costs.
HR Tech Market Expands Amid Cost Pressures
The HR tech market stands at $47.51B in 2026 and is projected to reach $95.95B by 2034. Competitors such as Accolade, acquired for $621M after raising over $200M, pursue broader navigation platforms. Healia's narrow focus on spousal HRAs creates a distinct category while addressing the 9% median rise in employer healthcare costs projected for 2026.
Ex-Root Insurance Founder Brings Scaling Experience
CEO Priyang Shah was the 15th employee at Root Insurance, which reached a $6.5B IPO, and an early employee at Olive AI at a $4B+ valuation. This operational background in scaling insurance and health tech companies aligns with the post-funding hiring push across sales, engineering, and operations in Columbus.
National Expansion Through Broker Channels
With deployments serving over 40,000 employees across 50+ customers, Healia plans to scale via partnerships with brokers including OneDigital, Higginbotham, USI, and Lockton while continuing to hire in sales and operations.