Lamar Health vs Hermes Robotics

About

Lamar Health is a healthcare technology company that navigates the prior authorization and insurance appeals process on behalf of patients who need coverage for expensive medications — particularly specialty drugs (biologics, brand-name medications for rare conditions) where insurers frequently deny coverage initially, requiring systematic appeals to achieve approval. Founded and a Y Combinator W21 graduate, Lamar Health raised $125,000 from YC and Plug and Play Tech Center, achieving $900,000 in revenue in 2024 with a 6-person team through largely bootstrapped operations.\n\nLamar Health's service works by handling the complex administrative and clinical documentation process that prior authorization and insurance appeals require. When a doctor prescribes a medication that the patient's insurance denies, Lamar's team prepares the clinical justification, compiles supporting medical documentation, and submits appeals — iterating through insurer-specific appeal processes (first-level appeal, peer-to-peer review, external review) until coverage is approved or options are exhausted. This process can take weeks to months and requires specialized knowledge of each insurer's appeal procedures.\n\nIn 2025, Lamar Health operates in the prior authorization management market alongside CoverMyMeds (McKesson), RxBenefits, and health system-level revenue cycle management vendors for medication access and prior authorization automation. Prior authorization has become one of the most significant friction points in US healthcare — the American Medical Association reports that the volume of prior authorizations has increased dramatically, with physicians spending significant time on administrative appeals rather than patient care. Lamar's patient-focused approach (working on behalf of patients, not providers or plans) addresses the most vulnerable point in the access breakdown. The 2025 strategy focuses on scaling the service through employer benefits channel partnerships and developing AI-powered tools to accelerate the appeals documentation process.