Y Combinator Invests $500K In AI Startup Helping Americans Save Money On Medical Bills
According to some estimates, 80% of medical bills contain errors; Avelis Health utilizes AI to help Americans save money on these bills. The startup recently raised $500,000 in a pre-seed funding round led by Y Combinator. Founded in February 2025 by Angel Onuoha and Ahmad Shehu, Avelis Health utilizes AI agents to scan users’ medical bills, identifying common errors and helping Americans save thousands of dollars.
Onuoha’s personal experience with a chronic knee injury prompted his decision to build the company. “Over the past decade, I’ve had to fight down $250K of inflated hospital bills for my chronic knee injury. This is uniquely an American problem,” he said in a LinkedIn post.
What is Avelis Health?
Avelis Health utilizes AI agents to review medical bills for errors and negotiate fair prices with providers. It uses its database of hospital rates to ensure the prices on your bill are not above market rates. It then creates appeal documents and contacts your hospital or insurer by phone, email, and fax.
“Imagine that every time you went to the hospital, you could send a picture of your bill to an app, and it would automatically negotiate the price down for you. This was the original idea of insurance, but somewhere along the way, they started prioritizing profit over actually helping people,” Onuoha says in a LinkedIn post speaking about the recent fund.
$500,000 pre-seed fund
The company just announced that it raised $500,000 from Y Combinator. Some of the funding will be used to support the launch of Payment Integrity, which will be customized for self-insured employers.
In an interview with AFROTECH, Onuoha said, “With the Y Combinator funding, we launched Payment Integrity for self-insured employers. We audit 100% of claims in real-time, catch billing errors before they pay, and save companies 8-10% on their annual health plan spend with zero impact to employee benefits.”
Image: Avelis Health
