The Health Insurance Plan Provider Raises a $2M Seed Round Led by Tabula Rasa Ventures To Help Launch into 40 U.S. Markets in 2023
BOSTON–(BUSINESS WIRE)–Enthea, the first provider of insurance plans for psychedelic healthcare, announces today its successful $2M seed round raise, led by Tabula Rasa Ventures, the first psychedelic accelerator for early-stage startups. The funds will be used to launch its services into 40 markets across the U.S. next year as well as grow Enthea’s customer base and provider network to further its mission of providing affordability and access to safe and effective psychedelic-assisted therapies for all who can benefit.
The United States is in a mental health crisis as 21M adults suffer from major depressive disorder and 12M from post-traumatic stress disorder and another 20M from substance use disorder.1 An ever-increasing number of clinical studies are showing that psychedelic treatments such as ketamine-assisted therapy can be very effective in improving symptoms for a wide range of behavioral health conditions over a sustained period of time.
Enthea is helping in this mental health crisis by bringing employer funding for these new treatments. Because traditional health insurers are years away from adding this coverage, the cost to patients prohibits widespread adoption. Key to Enthea’s mission is to make psychedelic-assisted therapies affordable, accessible, and equitable for as many as possible through its Provider Network – so that it’s not only available to the affluent but to all who would benefit. Enthea provides a turn-key operation that makes it easy for employers to include these treatments as part of their health care coverage to employees and their families. Its plans currently cover ketamine-assisted therapy; MDMA- and psilocybin-assisted therapies will be added as they become FDA-approved in the next several years.
“Through the creation of the country’s first psychedelic healthcare provider network, Enthea is taking a big step in creating access to these new, evidence-based healing options,” said Sherry Rais, CEO and Co-Founder of Enthea. “And as a workplace benefit, this treatment becomes affordable. Next year, most employers across the U.S will be able to offer these innovative treatments, covered under insurance, for the first time.”
Businesses can expect a positive impact on productivity from healthier employees, a reduction in medical expenses (especially when a mental disorder is paired with a chronic medical condition, eg diabetes), increased employee retention, and reduced turnover. Some companies will benefit by becoming a more attractive workplace for younger workers, who tend to seek employers with more generous and innovative benefit offerings.
Earlier this year, Enthea partnered with natural soap brand, Dr. Bronner’s as the first employer to add ketamine-assisted psychotherapy to its existing health insurance plans. The two have a shared belief that psychedelic-assisted therapies should be accepted into the standard of healthcare and have significant potential to heal as well as improve quality of life.
“Many members of the All-One family at Dr. Bronner’s who have been struggling with mental health challenges have availed themselves of ketamine-assisted therapy, and have relayed their deep heartfelt thanks for the incredible healing impact it has made,” reported David Bronner, CEO of Dr. Bronner’s. “Enthea makes the experience seamless for our staff as well as on our side, and I can’t recommend them highly enough. May all who are in need benefit from this healing medicine and therapy!” Some employees have publicly shared their positive experiences with this new treatment.
Enthea has spent the last two years building the infrastructure needed to scale and bring this concept to market. In January 2023, it will launch its services in New York City, Austin, and the Bay Area with the goal of opening in 20 top U.S. cities by mid-2023, and another 20 by the end of 2023 (See the full list). To create this offering of psychedelic therapy as a workplace benefit, Enthea has developed several core competencies:
Evidence-based medical policies for psychedelic therapies that are regularly updated based on clinical developments and FDA approvals.
Standards of care and credentials across the Enthea Provider Network to assure quality, positive patient experiences, and positive treatment outcomes.
Easy treatment authorization and reimbursements to providers, while shielding employers from Protected Health Information.
A range of customizable options based on the company’s business and personnel needs.
“We decided to invest in Enthea due to the shared belief that psychedelic-assisted therapies are highly effective and should be accepted as a tool into standard mental healthcare practice,” says Maria Velkova, Managing Partner at Tabula Rasa Ventures. “After seeing the impact their partnership with Dr. Bronner’s had, we wanted to get on board and help other employers and employees access these benefits.”
“From our perspective, Enthea could be the most impactful organization the psychedelic therapeutics sector has seen to date,” said Tabula Rasa Ventures Managing Partner and Founder, Marik Hazan. “No other company is taking such an innovative approach using market forces to increase access to psychedelic therapies. We see the long-term financial benefits this can have on our healthcare system. Tabula Rasa is fully aligned with Enthea’s vision and is excited to help push towards creating a next-generation healthcare benefit.”
ABOUT TABULA RASA VENTURES
Tabula Rasa Ventures is a venture capital firm dedicated to investing in the blindspots of the healthcare industry and supporting the most ambitious, values-aligned, and effective entrepreneurs building the future of health.
Enthea is a licensed provider of health insurance benefits to cover psychedelic-assisted psychotherapies (PAP). Their mission is to provide safe and affordable access to these innovative, effective treatments. Through Enthea’s workplace benefit plans, companies can provide their employees’ coverage for these important mental health treatment options. Enthea’s plans cover a wide range of mental health conditions affecting tens of millions of people. Our medical policies are evidence-based and guided by expert panels. To deliver this treatment, Enthea is building a nationwide network of credentialed clinics and therapists, opening in 40 US cities in 2023. Enthea’s plans currently cover ketamine-based treatments; we will add MDMA and psilocybin medicines as they are approved. Interested employers can find more here. Interested providers can find more here.