Vitable Health Acquires ICHRA Provider Liferaft, Expanding Affordable Health Coverage to Small Business Owners Nationwide

Vitable Health’s acquisition of Liferaft makes it the first health benefits platform to offer a vertically integrated ICHRA with Direct Primary Care that delivers lower costs, better care, and zero administrative burden, tapping into a market expected to offer insurance to over 11 million individuals according to the U.S. Department of Labor.

PHILADELPHIA, May 7, 2025 /PRNewswire/ — Vitable Health, the leading all-in-one health benefits platform making healthcare more accessible to small businesses and their employees, today announced its acquisition of Liferaft‘s HRA platform. 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 healthcare 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:

• 35 percent Lower Costs: Employers set fixed monthly contributions that average 35 percent below traditional group plans, with predictable budgeting and no surprise increases.
• Superior Care Access: Every member receives unlimited primary care, mental health services, and coverage for over 1,000 medications—all with zero out-of-pocket costs not dipping into their deductibles or out of pocket maximums.
• 90-Minute Setup, Zero Ongoing Admin: The entire platform can be implemented in 90 minutes, with AI-powered systems handling all ongoing administration.

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.”

About Vitable Health
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—including MEC and MVP plans, ICHRA and QSEHRA options, Direct Primary Care, Dental and Vision coverage, and Hospital Indemnity. Every plan includes access to primary care visits, mental health services, and over 1,000 covered prescriptions and labs with zero out-of-pocket costs. 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

Images available here.

About Liferaft
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.

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SOURCE Vitable Health