Daffodil Health, a San Francisco, CA-based provider of an AI-powered platform for U.S. health plan administration and claims processing, has raised $16.3 million in a Series A funding round led by Flare Capital Partners.
The round also saw participation from LRVHealth and returning investor, Maverick Ventures, alongside key individual investors, including Scott Mingee, former CEO of Equian (acquired by Optum), and Jim Lacy, former president and COO of Collective Medical (acquired by PointClickCare).
The funding round brought the total raised to $20.9 million.
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The company plans to use the funds to speed up product development and expand deployments with health plans and third-party administrators.
Daffodil Health is an AI-powered platform modernising U.S. health plan administration and claims processing. Legacy claims systems and point solutions, built on static pricing and limited reporting, can’t handle newer plan designs like narrow or tiered networks, reference-based pricing, and dynamic copays. Daffodil fills this gap by modernising the claims layer for next-generation, cost-efficient health plans, using a simple pricing model that aligns incentives and keeps costs predictable.
Across its current partnerships, Daffodil has consistently improved plan margins by seven figures. Unlike legacy vendors that charge a percentage of savings, Daffodil uses an AI-driven SaaS model that enables faster deployment and predictable costs without disrupting existing workflows. In one case, a payer partner saved about $4 million in the first year just from reduced vendor fees, not including additional gains from better price management and reporting.
“For too long, health plans haven’t been able to tackle rising healthcare costs because they rely on middlemen whose incentives can make things worse,” said Navin Nagiah, CEO and co-founder of Daffodil Health and former SVP of Products at MultiPlan/Claritev. “At Daffodil, we remove these low-value intermediaries from out of network repricing and payment integrity. This gives plans control over pricing and clear visibility into claims, enabling more transparent, auditable, and cost-effective benefit design.”
“Daffodil Health is transforming how health plans and TPAs update plan design, pricing, and claims systems, helping payers capture more margin and provide better member experiences,” said Parth Desai, Partner at Flare Capital Partners. “With AI-driven automation and built in auditability, Daffodil enables faster, defensible pricing, and plan design decisions at scale—something legacy vendors and point solutions can’t match.”
About Daffodil Health
Founded by CEO Navin Nagiah, Daffodil Health is an AI first healthcare technology company modernising claims and pricing for U.S. health plans. Its flexible, transparent platform lets payers, and third-party administrators manage out of network repricing and payment integrity in-house without adding operational complexity or extra labour costs.
Across its customers, Daffodil has consistently boosted plan margins by seven figures by cutting administrative waste and aligning incentives. Based in San Francisco, the company’s mission is to help health plans reduce costs, improve auditability and create more sustainable, member-focused benefit designs.
Daffodil replaces opaque, percentage of savings intermediaries with a modern SaaS platform that gives plans direct control over pricing, real time reporting and defensible benchmarks that meet regulatory and audit standards. Designed to work with existing core claims systems, it supports next-generation plan designs like reference-based pricing, narrow or tiered networks, and dynamic copays.
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