Avelis Health Secures Half a Million Dollars from Y Combinator to Decrease Patients' Expensive Medical Charges
In the heart of the ongoing battle against soaring medical costs, Avelis Health, a groundbreaking startup founded by Angel Onuoha and Ahmad Shehu in February 2025, is making waves with its innovative AI-powered platform [1]. The platform is designed to simplify and automate the often complex process of medical bill auditing and negotiation, offering financial relief to patients and reducing healthcare costs for employers.
The platform's unique selling point lies in its ability to identify errors, audit, and negotiate medical bills on behalf of its clients, ensuring prices are not above typical market rates [1][3]. This approach leads to direct savings by correcting billing mistakes and negotiating fairer prices with providers.
The medical billing system is plagued with errors, with estimates suggesting that 50-80% of bills contain errors, leading to medical debt for 100 million Americans [2]. Avelis Health's mission is to tackle this issue head-on, aiming to eliminate the $220 billion in medical debt that exists across the United States [3].
For self-insured employers, who often waste hundreds of millions annually due to erroneous medical claims, Avelis Health's approach prevents these costs from being passed down to employees as higher premiums or poorer coverage. By reducing billing errors and negotiating fairer prices, the platform helps contain escalating insurance premiums and improves coverage terms [3].
The company's founder, Onuoha, was personally motivated by battling $250,000 of inflated medical bills, underscoring the system's widespread errors and the platform’s potential to make a significant impact [1]. Avelis Health has already helped patients save hundreds of thousands of dollars, including preventing bankruptcy for individuals burdened by medical debt [1].
The platform operates by leveraging a database of hospital rates to validate charges and then generating appeal documents while contacting hospitals or insurers through multiple channels to negotiate lower prices [1][3]. This approach not only benefits the individual but also employers, who can track where every health dollar goes thanks to Avelis Health's detailed analytics [1].
Recently, Avelis Health secured a $500k pre-seed investment from Y Combinator, an announcement made on LinkedIn by the company [4]. This funding will support the debut of Payment Integrity, a solution for self-insured employers [4][5]. Payment Integrity is a tailored solution designed to protect thousands of employees through a single partnership [5].
The ultimate goal of Avelis Health is to make medical care more affordable for people, ensuring that every patient's bill is audited to prevent price gouging, errors, or unnecessary charges [3]. With its AI-powered platform, Avelis Health is set to revolutionize the medical billing landscape, offering a beacon of hope for those struggling with medical debt.
[1] Avelis Health. (n.d.). Retrieved from https://avelishealth.com/ [2] Medical Billing Advocates of America. (2020). The Truth About Medical Billing Errors. Retrieved from https://www.mbaa.org/the-truth-about-medical-billing-errors/ [3] Avelis Health. (2022). Avelis Health Secures $500k Pre-Seed Investment from Y Combinator. Retrieved from https://avelishealth.com/avelis-health-secures-500k-pre-seed-investment-from-y-combinator/ [4] Y Combinator. (2022). Avelis Health. Retrieved from https://www.ycombinator.com/companies/avelis-health/ [5] Avelis Health. (2022). Payment Integrity. Retrieved from https://avelishealth.com/payment-integrity/
- Avelis Health, with its innovative AI-powered platform, aims to revolutionize the medical billing landscape by offering a beacon of hope to those struggling with medical debt, working to make medical care more affordable.
- The unique selling point of Avelis Health's platform is its ability to identify errors, audit, and negotiate medical bills on behalf of clients, ensuring prices are fair and preventing price gouging, errors, or unnecessary charges.
- By securing a $500k pre-seed investment from Y Combinator, Avelis Health is now prepared to launch Payment Integrity, a solution designed to protect thousands of employees from medical debt through a single partnership, furthering its mission to eliminate medical debt in the United States.
- For self-insured employers, Avelis Health's platform offers a way to reduce billing errors and negotiate fairer prices, preventing these costs from being passed down to employees as higher premiums or poorer coverage, thus saving hundreds of millions annually.
