Function Health pursuing employer and payer deals

This push moves Function from selling a consumer wellness subscription one person at a time to trying to become a benefits line item that an employer or insurer can buy for thousands at once. That matters because the current business is still a $499 cash pay membership with about 200,000 subscribers and a $100M revenue run rate, while early partnerships with Thrive Global and the NBPA show the product can be packaged for organized populations instead of only individual buyers.

• The employer pitch is concrete. Function uses Quest Diagnostics draw sites for two covered lab visits per year, then delivers results in a dashboard with biomarker trends and lifestyle guidance. In an employer setting, that becomes a preventive benefit sold through HR and wellness budgets, not just Instagram driven self purchase.
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• The first proof points are channel partnerships, not broad payer contracts. Thrive Global offers Function inside an employee coaching program, and the February 5, 2025 NBPA deal gives active and retired NBA players access to 100 plus biomarker testing and personalized insights. These are useful wedges into group distribution.
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• Moving into Medicare and Medicaid is a much bigger step because government payment runs through defined coverage and lab fee schedules, not open ended wellness spending. The strategic benchmark is digital health companies like Virta and Ro that compete for employer and payer contracts by proving structured programs can manage cost and outcomes at scale.
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The likely path is employer benefits first, then commercial payers, then selective government programs where Function can tie biomarker testing to prevention and chronic disease management workflows. If that transition works, the company stops looking like a premium longevity subscription and starts looking like healthcare infrastructure for covered populations.