Judi Health (ex-Capital Rx) Secures $252M, Valuation Jumps to $3.25B

Capital Rx has rebranded as Judi Health and secured $252 million in equity funding, raising its valuation to $3.25 billion, according to Forbes. Founded eight years ago by AJ Loiacono, the company initially focused on transparency in drug pricing. This new funding will facilitate an expansion into broader medical cost management solutions. This strategic shift follows a successful internal trial of Judi Health's medical benefits administration software on its own employee health plan, covering 1,800 employees and their families. The trial yielded an 11% year-over-year cost reduction, enhanced employee benefits, and a significant decrease in claims processing time, from over six months to a maximum of 18 days. Loiacono told Forbes that the company realized "a reduction per member per month on all costs" by eliminating hidden and unnecessary fees. Judi Health is now offering its medical claims administration services to businesses and third-party administrators. The $252 million funding round was led by Wellington Management and General Catalyst, bringing the company's total funding to $607 million. Due to strong investor interest, the round was oversubscribed, with investors purchasing over $150 million in equity from early backers. Goldman Sachs Asset Management and Generation Investment Management, chaired by Al Gore, also participated in the round. To celebrate the funding and rebranding, Loiacono is scheduled to ring the opening bell at the New York Stock Exchange on Wednesday.