Abby Care Raises $82M to Pay Family Medicaid Caregivers

A U.S. home health startup that converts unpaid family members into certified, Medicaid-reimbursed caregivers has secured $82 million in Series C funding as the country confronts a structural collapse in its home care workforce.

Transformation Capital led the round for Abby Care, which was founded in 2022 by Havi Nguyen. CVS Health Ventures, Frist Cressey Ventures, and Pivotal Ventures joined as new investors, while Khosla Ventures, Thrive Capital, and Sequoia increased their existing stakes.

The capital injection arrives at a critical juncture for state Medicaid programs. Under federal self-directed care provisions, states have long possessed the authority to allow beneficiaries to hire their own caregivers, including relatives. Yet the administrative burden of credentialing, payroll, compliance, and clinical oversight has kept these programs severely underutilized. Families who qualify often lack the infrastructure to navigate the paperwork required to get paid for care they are already providing around the clock.

Abby Care operates as an AI-native Medicaid provider designed to absorb that friction. The company partners directly with managed care organizations and state health plans to train family members, credential them, and handle the billing mechanics necessary to compensate them for delivering authorized care at home.

The model targets a widening chasm in American health care delivery. Traditional private duty nursing agencies routinely fail to staff approved care plans. According to Justin Brock, general partner at CVS Health Ventures, conventional programs fill only 65% of authorized shifts, leaving medically complex patients without mandated coverage.

That shortage is not temporary. The Bureau of Labor Statistics projects the U.S. will need hundreds of thousands of additional home health aides over the next decade, but turnover rates in the sector frequently exceed 60% annually. Low wages, lack of benefits, and the physical toll of the work drive constant attrition among agency-employed aides. Meanwhile, tens of millions of family members provide uncompensated medical and custodial care, often sacrificing their own employment and financial stability to do so.

Nguyen’s approach stems from direct experience with those systemic failures. As the eldest daughter in a Vietnamese immigrant family, she spent her childhood translating at medical appointments and managing Medicaid documentation. By age 21, during the peak pandemic shortages, she was working at an early-stage health technology company focused on pediatric autism therapy. She watched clinicians cycle rapidly through jobs while parents repeatedly asked how they could be trained to deliver therapeutic interventions themselves.

For families managing severe pediatric conditions, hospital discharge rarely comes with adequate support. Maria Villegas Corrales, a Colorado mother whose daughter Mia required open heart surgery and a pacemaker shortly after birth, began working with Abby Care following the June 2024 procedure. Corrales noted that families are frequently sent home with minimal instruction, forcing them to learn complex medical management through trial and error. Through the platform, she became a compensated caregiver for her daughter, accessing resources that many eligible families do not realize exist.

The involvement of CVS Health Ventures signals broader industry interest in integrating family-directed care into mainstream insurance networks. Rather than competing solely against traditional home health agencies or standalone caregiver education platforms, the company functions as an intermediary layer between health plans, state regulators, and households.

Pear VC, a Menlo Park-based venture firm operating in the same pre-seed and seed ecosystem as several of Abby Care’s early backers, separately closed a $333 million fifth fund targeting early-stage companies, reflecting continued venture appetite for foundational healthcare infrastructure despite broader market volatility.