Marpai, an AI technology company, has launched its platform Marpai Connect to expand its services in the healthcare industry. The platform uses AI and data analytics to connect health plan participants with suitable and affordable providers. Marpai Connect is designed to help self-insured employers minimize risk and reduce spending on healthcare. The company has ambitious plans to grow its value-based-care network to cover more than 15 different disease states. Marpai intends to offer the platform to other healthcare payers from the fourth quarter of 2023.
According to Lutz Finger, Marpai’s President of Product and Development, chronic diseases represent 41% of the cost across Marpai’s book of business. To address this, Marpai Connect began partnering with the best value-based solutions for chronic conditions. The TPA market was worth $280 billion in 2020 and is expected to grow to $514 billion by 2030, at a compound annual growth rate (CAGR) of 6.1% over 2020-2030.
Marpai believes its activities in implementing AI innovations in the healthcare sector are significant. The healthcare system operates on a traditional model that can be difficult to penetrate, but Marpai has found a way to leverage AI tools in the low-tech TPA sector to save employers money while providing workers access to the healthcare they need. Venture capitalists believe that AI will be the largest driver of innovation and growth opportunities over the next 12 months. By using AI in the healthcare sector, Marpai is differentiating itself within a crowded market. It already has an annual revenue of around $30 million, demonstrating that it can drive profit and use AI with success.
The launch of Marpai Connect is an example of how AI can analyze data and render processes more efficient in the healthcare sector. This is significant for the self-funded healthcare plan sector, which has increased as a percentage of total healthcare plans over the past decade. Marpai calculates it has a total addressable market (TAM) of around $22 billion in fees paid for TPA services. For the same fee as a traditional TPA, Marpai can deliver what it believes is a superior value offering that not only saves employers’ money but also saves employees’ lives.
In conclusion, Marpai Connect offers a unique opportunity for self-insured employers to minimize the risk and reduce spending on healthcare through its AI tools. With the healthcare system operating on a traditional model, Marpai’s service offers a refreshing and innovative change in the industry. Its annual revenue of $30 million and TAM of $22 billion in fees paid for TPA services show that it can drive revenue and save lives simultaneously.
