Why We Invested: Lilac Software
Company: Lilac Software
Founders: Neetu Rajpal, Alex Schaefer, Marc S. Ryan
Stage: Pre-Seed
Industry: Healthcare Technology
Focus Area: Medicare Advantage Analytics
Meet Lilac Software: Empowering Medicare Advantage Plans to Achieve Higher Star Ratings
Lilac Software is developing a modern, cloud-native platform designed to help Medicare Advantage (MA) plans navigate and improve their performance in the CMS Star Ratings program. Its Star Performance Management Platform addresses critical pain points for MA plans, enabling them to integrate fragmented data, gain actionable insights, and make informed decisions that directly impact their star ratings, operational efficiency, and financial outcomes.
Lilac's AI-powered platform provides predictive and real-time analytics for Overall Star scores, Individual measure scores and identifies the most real-time effective gap-closing opportunities. The best practices encoded in the platform for remediations fosters better health health outcomes for members and greater operational efficiency for health plans.
Why Star Ratings Are Critical for Medicare Advantage Plans
Medicare Advantage plans have grown rapidly, with enrollment surpassing 30 million beneficiaries in 2024 and projected to continue rising. These plans are assessed annually by the Centers for Medicare & Medicaid Services (CMS) through the Star Ratings Program, which measures performance on metrics like clinical outcomes, patient experience, and operational efficiency. Plans achieving 4+ stars qualify for significant federal bonuses and improved member retention.
However, the average star rating for plans has recently dropped from 4.07 in 2023 to 3.92 in 2025, with the number of 5-star plans falling from 74 in 2022 to just 7 in 2025. Many MA plans are struggling to adapt to rising quality standards and growing complexity in performance measurement.
For an MA plan with 50,000 members, failing to achieve a 4-star rating can result in $30 million in lost revenue annually. This makes the ability to improve star ratings mission-critical for many payers. Lilac Software’s platform provides a solution tailored to these needs, enabling plans to bridge the gap between fragmented data and actionable strategies for improvement.
What Differentiates Lilac in the Market
The healthcare analytics space is highly competitive, with established players like Inovalon, Cotiviti, and Optum offering broad solutions for payers. However, Lilac Software differentiates itself with its specialized focus, cloud-native technology, and actionable insights. Key differentiators include:
Purpose built for Stars and HEDIS improvements: Lilac's platform incorporates NCQA Certified and PQA Licensed Measures that directly impact Medicare Advantage plans. The platform directly addresses the needs of plans who are trying to get or maintain a 4+ Star rating. Getting to a 3.5 and advancing to a 4+ Star ratings have material positive ROI impact.
Cloud-Native and Agile: Unlike legacy platforms, Lilac’s solution is built on a modern, cloud-native architecture, enabling real-time data processing and faster implementation.
Actionable Insights: The platform goes beyond reporting by offering proactive recommendations for improving star ratings, streamlining administrative tasks, and driving better member outcomes.
About the Team
Lilac Software is led by an experienced and passionate team that brings deep expertise in healthcare technology, data analytics, and payer operations:
Neetu Rajpal (CEO): Former CTO at Oscar Health, Neetu has extensive experience in scaling healthcare technology platforms and navigating complex regulatory environments. She also served as Chief Product Officer at Conductor and began her career at Microsoft, working on SaaS solutions and developer tools.
Alexander Schaefer (CCO): A seasoned go-to-market leader, Alex has built and scaled customer-facing teams across multiple industries. He brings a strong operational background from his role as Chief Customer Officer at Lumar and a commitment to driving customer success.
Marc Ryan (Chief Solutions Officer): Marc is a healthcare veteran with decades of experience in policy and operations. As a founding executive at MedHOK (now MHK, acquired by Hearst Health), he has demonstrated expertise in launching successful payer solutions. Marc is also the author of The Healthcare Labyrinth, a comprehensive guide on the complexities of the US healthcare system.
Technical Leadership: The team includes experts like Matt Spivey, a principal engineer with experience at Oscar Health and Talkspace, and Denise Draper, a data engineering lead with a PhD in Artificial Intelligence and a background at Microsoft.
This team combines technical acumen, healthcare experience, and operational insights to execute Lilac’s ambitious vision.
The Market Opportunity
The Medicare Advantage market presents a significant opportunity for Lilac Software:
Growing Enrollment: Medicare Advantage plans now serve over 30 million beneficiaries, with annual growth projected at 5.8% CAGR.
Financial Incentives: CMS offers substantial bonuses for plans achieving 4+ stars. For a small plan, improving from 3.5 to 4 stars can generate millions in additional revenue.
Demand for Advanced Analytics: As payers face increasing complexity in quality measurement and value-based care, real-time analytics platforms like Lilac are becoming essential.
Lilac is well-positioned to capture market share in this rapidly expanding sector by addressing critical gaps in data integration, operational efficiency, and star rating management.
Coyote Ventures Investment
Coyote Ventures is thrilled to support Lilac Software in its pre-seed round, alongside other investors Company Ventures, AlleyCorp Partners, Social Starts, and Forum Ventures. We believe Lilac’s innovative approach to improving Medicare Advantage performance aligns perfectly with our mission to invest in transformative healthcare technologies.
How Lilac Advances the Conversation Around Healthcare Analytics
Lilac is addressing a critical need for Medicare Advantage plans by simplifying and optimizing star rating management. By integrating fragmented data sources and delivering actionable insights, the platform not only improves payer performance but also contributes to better health outcomes for members.
The company’s focus on cloud-native technology and real-time analytics sets a new standard for efficiency and scalability in the healthcare payer space. As the industry continues to shift toward value-based care, Lilac’s platform is poised to play a pivotal role in shaping the future of payer analytics.
Vision for the Future
Looking ahead, Lilac has the opportunity to expand its offerings beyond Medicare Advantage to address broader payer needs, including Medical Economics, Member 360 view and Risk Stratification across not just MA but also Medicaid and ACA lines of businesses. By building a comprehensive suite of tools, the company aims to become the go-to platform for payer analytics across all lines of business. We are excited to partner with Lilac Software as it executes this bold vision and transforms how payers leverage data to drive financial and clinical success.