President Donald Trump signed the One Big Beautiful Bill Act into law on July 4, a policy that tightened Medicaid requirements for 80 million Americans and accelerated expansion plans for a little-known AI-powered healthcare startup that just secured $18 million in a Series A funding round led by Andreessen Horowitz to scale nationwide, Forbes reports. The round brings the startup's total funding to $22 million.
New York-based Fortuna Health promises to make Medicaid enrollment as fast as filing taxes with TurboTax, and its founders told Forbes that the political shake-up is accelerating expansion plans across all U.S. states and territories.
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AI Technology Speeds Medicaid Enrollment From Weeks to Minutes
Fortuna Health launched in 2023 with a goal to modernize one of the most outdated yet essential areas of U.S. healthcare: Medicaid enrollment.
Founded by Nikita Singareddy, Cydney Kim, and Ben Wesner from a Brooklyn apartment, the startup's software enables patients to submit and renew Medicaid applications in under a minute, compared to the traditional process that can take up to 45 days. According to Forbes, the platform uses artificial intelligence to detect common errors, such as missing pay stubs, before applications are submitted.
Hospitals and insurance plans pay to use Fortuna's platform, Forbes says, benefiting from higher patient retention since coverage means more reimbursement from state Medicaid programs. The system offers personalized, multilingual guidance that can handle complex situations like mixed immigration status or seasonal employment.
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Policy Changes Create Urgency for Nationwide Expansion
The One Big Beautiful Bill Act introduced new Medicaid requirements, including renewals every six months instead of annually and proof of at least 80 hours of work each month. Singareddy told Forbes that these changes have "forced our hand to move quicker on expanding into all 56 U.S. states and territories."
Fortuna is currently operating in eight states and plans to use its new funding to expand infrastructure and develop more AI-powered workflows. Andreessen Horowitz General Partner Julie Yoo praised the company's timing, telling Forbes that Fortuna entered the market when demand for Medicaid tech solutions surged following the rollback of pandemic-era protections.
"We always say there are no bad ideas, just bad timing and what generated so much momentum for Fortuna is that they picked the perfect time to enter the market," Yoo said.
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Challenges Ahead and Growing Consumer Interest
Healthcare analyst Ryan Daniels from William Blair told Forbes that the company faces a "classic chicken and egg problem," needing major payer or hospital support to enter new markets, but also requiring consumer awareness to secure those partnerships. Fortuna is working with local organizations at the state and county levels to boost visibility and address this challenge.
Singareddy, who previously worked at Oscar, RRE Ventures, and a federally qualified community health center, told Forbes that 70% of Medicaid churn is due to avoidable procedural issues like unclear instructions.
Users have shared experiences with the platform, including one who said, "I didn't even know I qualified for Medicaid, but after using Fortuna, they answered all my questions, screened, and applied me in a few minutes."
With $22 million in funding so far and a shifting political landscape, Fortuna Health may transform Medicaid access for millions who rely on it and millions more who may not yet know they qualify.
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