Vitable Health’s acquisition of Liferaft will deliver lower costs, better care, and zero administrative burden, tapping into a market expected to offer insurance to over 11 million individuals by the end of 2029, according to the U.S. Department of Labor.
Vitable Health, the leading all-in-one platform making healthcare and benefits more accessible to small businesses and their employees, today announced its acquisition of Liferaft’s platform, a leading ICHRA provider. Vitable Health’s acquisition of Liferaft is a critical piece in building the first unified platform to solve the "Impossible Triangle" of employee healthcare, in addition to lowering costs while expanding coverage by harnessing AI to eliminate costly administrative burdens that previously made affordable, quality care elusive. This breakthrough comes as 58 percent of small businesses report they can no longer afford traditional group health insurance, leaving more than 80 million Americans uninsured or underinsured.
"For decades, employers have faced an impossible choice: affordable healthcare that's low quality, high-quality care that's unaffordable, or burning countless hours managing fragmented benefits and point solutions," said Joseph Kitonga, Founder and CEO of Vitable Health. "By combining Liferaft's ICHRA technology with our direct care network, we've broken through the impossible triangle and created something revolutionary: a single platform for employee health, care and benefits, that eliminates these painful tradeoffs completely."
By integrating Liferaft’s ICHRA platform into its existing healthcare services, Vitable Health is the first national provider to offer both ICHRA-based coverage and end-to-end primary care services under one platform. Utilizing AI and cutting out bureaucratic costs associated with middlemen, Vitable Health has eliminated roughly 25 percent of healthcare costs that are typically wasted on administration – allowing employers to reinvest those savings directly into high-quality care for their teams, rather than overhead. Without the exorbitant administrative fees of traditional ICHRA providers, Vitable Health has built a robust, fiscally sustainable platform that saves businesses and their employees money, while offering seamless and delightful access to essential care.
By integrating Liferaft’s ICHRA offerings, Vitable Health is the first to break through healthcare’s historically "Impossible Triangle" by offering:
Liferaft, founded by Nimish Shukla and Ian Blumenfeld, has helped hundreds of employers design custom HRA-based benefit plans. Known for trusted broker relationships and product flexibility, Liferaft brings deep ICHRA market knowledge and proven implementation infrastructure. The partnership accelerates Vitable Health’s go-to-market timeline by at least six months and unlocks new opportunities across both broker and employer channels.
“We’ve spent years simplifying healthcare benefits for growing teams,” said Nimish Shukla, Co-Founder and COO of Liferaft. “In Vitable Health, we found a partner with a shared belief that better care should be both accessible and affordable. Together, we can deliver real impact to millions of workers, and we can do it now, not later.”
Vitable Health is the health benefits platform making healthcare better for everyday workers. With a focus on real access over red tape, Vitable Health offers employers affordable, ACA-compliant health benefit solutions built around a Direct Primary Care Plan, including Self-Funded plans, HRA Options, and Supplemental Benefits. Every plan includes access to primary care visits, mental health services, over 1,000 covered prescriptions and labs, and zero out-of-pocket costs. The platform serves SMBs in myriad sectors – from home healthcare and transportation companies to automotive repair businesses and nonprofits. To date, Vitable Health has raised $25 million from top-tier investors such as First Round Capital, Y Combinator, Cherryrock Capital, Citi Bank’s Impact Fund, Commerce Ventures, Jack Altman, Michael Seibel, Immad Akhund, and SoftBank Opportunity Fund. Learn more at vitablehealth.com
Contact: media@vitablehealth.com
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Liferaft is a technology-enabled HRA platform that helps businesses and benefits partners move beyond traditional group health plans. Designed for small and midsize employers, our modular, API-driven system enables the launch of out-of-the-box HRA solutions or fully custom, self-branded benefits programs. Powered by proprietary integrations and a claims engine, Liferaft streamlines plan design, automates compliance, and delivers hands-on support – making personalized, tax-advantaged healthcare simple to offer and easy to manage. Liferaft was founded by insurance, technology, and financial services professionals and raised $11 million in funding from leading investors, including XYZ Venture Capital, Costanoa Ventures, and Oceans. Liferaft serves a wide range of clients, from tech startups and logistics companies to educational nonprofits. Learn more at liferaft.co.
