The U.S. healthcare system is full of good intentions and bad incentives. Employers and plan sponsors are spending more than ever on benefits, yet care is harder to access, harder to understand, and harder to manage. Pharmacy and medical benefits remain siloed, pricing is opaque, and people often delay care because they don't know what's covered or how much it will cost. The system simply doesn't work for the people it's supposed to serve.

At General Catalyst, our health assurance thesis calls for a more affordable, equitable, and accessible healthcare system: one powered by modern infrastructure that helps align incentives among all stakeholders. Judi Health (fka Capital Rx) is one of the clearest expressions of that vision we've seen.

We've backed Judi Health since their Series C, and today we're doubling down on our partnership by co-leading their $400M funding round. What began as a tech-native, transparent pharmacy benefit manager (PBM) has grown into a full-stack health infrastructure platform with the ambition and execution to transform how healthcare is administered across the U.S. We're investing even more deeply because Judi Health has proven to us they can deliver transparency, unification, and modern infrastructure to an industry that desperately needs all three.

Transparent by Design

As the intermediaries that manage prescription drug benefits for health plans, PBMs are essential in the broader healthcare landscape. But their current model is broken. Traditional players obscure true drug costs, pocket rebates, and frustrate members at every turn. Judi Health has built what we think is a radically different model: one rooted in transparency, alignment, and accountability. They peg pharmacy reimbursement to publicly available National Average Drug Acquisition Cost (NADAC) prices and pass 100% of rebates through to clients, without utilizing spread pricing.

Beyond better economics, it's a better experience that has resulted in strong customer traction. They're also helping employers address some of the fastest-growing challenges in benefits design, from the explosive demand for GLP-1s to the need for real-time drug cost forecasting and smarter utilization management.

A Unified Platform for Medical and Pharmacy Claims

But pharmacy is only part of the story. Many employers today manage their medical and pharmacy benefits on completely separate systems, creating blind spots in care coordination, spend management, and fiduciary oversight. The Judi Health platform changes that by bringing pharmacy and medical claims together on one integrated, modular platform. This gives plan sponsors a real-time, line-by-line view of their total cost of care, enabling faster edits, smarter network configuration, and major administrative cost savings. Built on modern, cloud-native infrastructure with dynamic APIs, Judi facilitates faster configuration and is increasingly powered by AI for real-time adjudication and fraud prevention.

Early deployment shows a 5-10% reduction in medical spend on a per employee per month basis year-over-year. But the bigger impact is that Judi gives employers greater control over their benefits, allowing them to design plans in hours rather than months, intervene early on rising costs, and simplify the tangled vendor stacks that currently dominate the benefits ecosystem. This is what we believe healthcare powered by applied AI looks like.

Execution at Scale

Transforming an industry this entrenched takes more than vision; it takes grit. Co-founders AJ Loiacono, Judi Health’s CEO, and Ryan Kelly, CTO, bring both. They’ve built a team that blends healthcare expertise with technical rigor and unwavering drive. This team is able to execute complex deployments and configure comprehensive platforms, enthusiastically rebuilding the healthcare and pharmacy claims systems from the inside out with humility, tenacity, and exceptional execution.

We look forward to deepening our partnership with AJ, Ryan, and the team as they scale the health benefits platform the U.S. needs. In our view, the future of benefits administration is unified, intelligent, and transparent. We believe Judi Health is building it.