The companies are set to announce Wednesday that CakeHealth users will soon be able to use an integrated GoodRx tool to find the best prices for prescription drugs in their area.
As health care costs climb and consumers look for ways to save, medication is one area where they can cut back, said Rebecca Woodcock, Founder and CEO of CakeHealth.
GoodRx, which was founded by former Facebook employees Doug Hirsch and Scott Marlette as an “Orbitz for prescription drugs,” says it provides prices and discounts for thousands of prescription drugs at more than 70,000 local and mail-order pharmacies in the US. Given the price fluctuation between local pharmacies for the same prescription (prices can swing 20 to 80 percent, according to GoodRx), the startup aims to give consumers more transparency and information so that they can make the most cost-effective choices.
Since launching last September, the company raised $1 million from investors including SV Angel, Founders Fund, Highland Capital and Lerer Ventures. It’s also scored positive reviews from Consumer Reports and others.
Also launched last year, CakeHealth released a new version of its platform in June that further positions it as a consumer-focused platform and will allow it to scale, Woodcock said.
At the time, she told me that CakeHealth was developed to help consumers answer the questions: “When I get this statement in the mail that’s not a bill, what do I need to do? How much left until my insurance kicks in?… How is this impacting my family household?”
To date, Woodcock said, power users of the site have been dads in their early 30s with a sick spouse or children, but while dads have been the early adopters she said she sees an opportunity to broaden the service’s reach to moms.
The company, which has raised an undisclosed amount of seed funding, provides the basic services to consumers for free, but in the future it could earn revenue from additional fee-based services that could save consumers money on healthcare spending. CakeHealth is similar to Simplee, another startup we’ve covered that helps consumers manage healthcare expenses. But Simplee intends to earn revenue through a software-as-a-service model and partnerships with employers, HSA banks and FSA/HRA administrators, and offer all of its services to consumers for free. CakeHealth says it has more strategic partnerships up its sleeve, so it will be interesting to see how the company evolves.