First Dollar healthcare savings startup closed $5 Techugo

First and foremost, you must know that First Dollar targets Millennials and Gen Z. As this is considered to be a healthy population, spending too much per year on healthcare coverage than they need. Surprisingly, only 1 out of 5 people in such demographics receive their deductible amount every year. Here First Dollar comes as a savior and provides them a better platform and allows them to spend on premiums into a simple, informative, 100% fee-free HSA account.

In its working mechanism, First Dollar enables employers and end-users to work along with its platform. Also, it charges employers a monthly administration fee to manage payroll contributions and HSA reporting, Also, customers get the option to set up a free account through their site and manage their money there.

Who is behind this Seed round funding?

First Dollar announced its $5 million seed funding round, which is further led by Next Coast Ventures with participation from Meridian Street Capital. Also, the other investors include former athenahealth CEO Jonathan Bush, Everlywell CEO Julia Cheek, Bright Health CTO Brian Gambs, and Capital Factory.

How does First Dollar work?

As stated by the founders of First Dollar, the platform aims to help consumers to get better use out of their healthcare savings accounts. The HSA is basically a non-taxable savings account, which can be used by the users to address their medical expenses, doctor visit co-pays, or medical prescriptions.

However, you should not forget that First Dollar works on both the front end and back end of HSAs. And charges a minimal monthly administration fee to employers, to manage payroll contributions and HSA reporting.
On the other hand, from the users’ perspective, First Dollar allows consumers to set up a free account via their website and manage the money.

Also, users can avail of the First Dollar debit card as well and earns money from a percentage of transactions on the debit card.

With this card, users get the opportunity to see where they get the most savings on certain medical products. And the company has also associated with RxSaver to get the discounts on the drugs. In another exciting way, the users can transfer their existing HSA to First Dollar or create and fund a First Dollar HSA.

With the help of First Dollar account, users receive the discounted healthcare products and services. And if required they can also attain the discount at a local pharmacy by showing the cashier a code from First Dollar.

How the First Dollar is different from Lively?

The closest venture-backed competitor for First Dollar is Lively, which has already raised $27 million back in October for its HSA product.

Lively also targets millennials with low fees and online management and provides the users with a great way to use HSA as an investment account.
However, First Dollar is different from Lively, as it focuses on educational content as well. Also, its offerings are not limited to this, but it creates a marketplace for customers, helping them to find healthcare products and services at lower price points.

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