Baba, which develops AI tools to help Medicare and Medicaid patients connect to care teams and handle advocacy tasks, raised a $40M Series A led by FirstMark

AI-powered care coordination for government health plans becomes a scalable, risk-bearing proposition.

Baba, an AI-powered platform designed to assist Medicare and Medicaid patients with care team access and advocacy, has successfully closed a $40 million Series A funding round. The round was led by FirstMark Capital and included participation from CVS Health Ventures and Valtruis, along with returning investors General Catalyst, Genius Ventures, and Ground Up Ventures. Founded in 2025, Baba aims to modernize the healthcare experience for elderly and rural individuals with complex needs, connecting them with care coordinators and licensed therapists. The company reports supporting over 10,000 patients and having a waiting list of 100,000 families. Baba was also selected by the U.S. Centers for Medicare and Medicaid Services for the 10-year ACCESS model. The newly acquired capital will be used to expand research, engage with more health plans, and accelerate value-based care arrangements, with a focus on taking on financial risk.

This funding round signals a significant push toward consumerizing complex healthcare navigation for a demographic often underserved by technology. Baba's focus on value-based arrangements and explicitly taking on risk with payers indicates a growing trend of tech companies aiming to directly manage patient outcomes and associated costs, rather than just providing tools. The development of BabaBench, an AI benchmark for patient advocacy tasks, suggests a maturing approach to evaluating and deploying AI in highly regulated and intricate healthcare scenarios.

The investment underscores the increasing appetite from both venture capital and strategic corporate investors, like CVS Health Ventures, for solutions that can streamline government-sponsored healthcare programs. For patients and their families, this could mean more accessible, coordinated, and accountable care. For the broader healthcare industry, it suggests a future where AI plays a more central role in managing chronic conditions and navigating administrative burdens within Medicare and Medicaid, potentially reshaping how these massive government programs are delivered.