In my role as Chief Investment Strategist for Pre-IPO Millionaire — StreetAuthority’s one-of-a-kind premium newsletter dedicated exclusively to identifying early-stage investment opportunities for individual investors — I spend a lot of time researching innovative companies that are at the cutting edge of their field.

Once I find a promising pre-IPO investment opportunity, I then showcase my research in my newsletter as well as explain to readers how they can invest through equity crowdfunding platforms, which, thanks to the loosening of regulations prohibiting the average investor from participating, promise to be the next frontier for investors seeking to make outsized gains.

While researching ideas for my subscribers, I came across one company that may have found a critical way to help solve the medical cost crisis. It has to do with combining the social media revolution with healthcare, and the result is a reduction in medical costs by more than two-thirds.

Simply put: This company could change the way we get diagnosed and how we pay for healthcare in the future.

The Problem: Medical Costs Are Out Of Control
If I asked you to name the single biggest threat to the U.S. economy and our standard of living right now, what would you say? Beyond terrorism and the income gap, beyond political discord?

Medical care costs jumped 1% in August, according to the U.S. Labor Department. That’s not a year-over-year number but just one month — the biggest jump in 32 years. That was before the average premium on Affordable Care Act coverage shot up 22% in November.

Health insurers are dropping coverage and people are avoiding much-needed treatment because health-care costs are surging. Households already spend 8% of their income on healthcare, and that percentage jumps to 13% for people 65 and older.

It’s a problem that isn’t going to fix itself. The PwC Health Research Institute expects health insurance premiums will to jump 6.5% through 2017, a rate nearly six-times the general rate of consumer inflation.

This Company Could Hold An Important Key To Reining In Medical Costs
Launched in 2013, CrowdMed is a crowd-sourcing platform that uses a team of medical experts to diagnose patients with unresolved medical cases. These are patients who have seen multiple doctors, have gone months and years with chronic illness, and still can’t get answers. All the while racking up thousands of dollars in medical costs.

#-ad_banner-#CrowdMed was born when founder Jared Heyman’s sister struggled to get a diagnosis over nearly three years, two dozen doctors and more than $100k in expenses and still with no progress in sight.

She had always been active but now could barely get out of bed, and the doctors didn’t have a clue.

The condition was eventually solved by a large, interdisciplinary team of experts who each brought their own insight to reach a consensus-based diagnosis. She was diagnosed with a rare genetic mutation found in just one of every 15,000 people.

Most surprising of all is that, when she finally did get the diagnosis, she found out that all her symptoms could be eliminated with a simple hormone patch in less than a month.

The crowd-sourced diagnosis was born.

Patients with unresolved medical conditions can post their case on CrowdMed’s platform for as little as $149 per month, with packages ranging to $749 per month. Patients upload their medical records and prior test results, and answer a comprehensive set of questions. All patients are given pseudonyms to protect their identity.

CrowdMed’s community of 20,000-plus “medical detectives” collaborate on solving the case through discussion and individual research while a patented software technology helps to identify the most probable diagnoses and solutions.

To date, more than a thousand cases have been solved and the platform has a 60% success rate on uploaded cases. The average patient on the platform has been sick for seven years and has incurred over $70,000 in medical expenses after seeing an average of eight doctors.

On CrowdMed, the average case is resolved in two to three months and typically costs less than $500.

There have been plenty of success stories and changed lives within these 1,000 solved cases.

The Opportunity
Launched in December 2013 through the Y Combinator accelerator program for select startups, CrowdMed raised $2.4 million in funding from Silicon Valley venture firms NEA, Khosla Ventures and Andreessen Horowitz.

Now here’s where things get interesting for investors…

CrowdMed is now partnering with health insurance plans and at-risk providers to grow the company. Partners are reporting five- to 18-times return on investment by sending patients to CrowdMed rather than through the traditional medical system.

The company estimates that at least 6% of the U.S. population has an unresolved medical condition at any given time. Other sources such as the National Institutes of Health and the Genetic and Rare Disease Information Center validate a huge target population and need for greater diligence in medical diagnoses.

The problem in diagnosing and treating the population with unresolved medical conditions is a growing burden on the insurance market, with 25% of cases eventually costing more than $20,000 to resolve. CrowdMed estimates that more than $360 billion is wasted every year on unresolved medical cases and has estimated a target population for its services of more than 19 million people.

The market population booms if you include those with undiagnosed conditions. The Centers for Disease Control and Prevention (CDC) estimates that nearly a third of people with diabetes — a population of more than eight million people — don’t know they have the disease. Nearly a quarter (24%) of the population with hypertension is undiagnosed.

Three-fourths of total U.S. health care spending ($1.6 trillion) is spent by people with one or more chronic conditions. Diagnosing even a segment of this population through a crowd-sourced option like CrowdMed has the potential to shift costs to less-expensive preventative care and lower total health-care costs.

Beyond the potential to diagnose unresolved cases and bring down medical costs, an inexpensive crowd-source model could be used as a second opinion to avoid misdiagnoses and associated malpractice claims.

How You Can Get In On The Ground Floor
CrowdMed is raising money now to fund four pilot trials with insurance health plans, trials that could get the company access to hundreds of thousands of patients. Silicon Valley tech heavyweights have already put their resources into the company, and now it’s your chance.

Based on a deep-dive analysis I shared exclusively with Pre-IPO Millionaire readers, I think CrowdMed could deliver a return of between 43% and 87% over a three-year period. However, it’s important to remember that you won’t find CrowdMed listed on the major stock exchanges. That’s because this is a startup company — and as such, it doesn’t trade like a normal stock. But that can’t stop you from investing in the company… As I explain in this report, wealthy elites have been investing in pre-IPO companies for years — and they’ve been making a killing.

Now, thanks to the equity crowdfunding revolution, regular investors can own a piece of some of the most innovative pre-IPO companies (like CrowdMed) around. And you can do it without risking a fortune. If you’d like to learn how to do this, I invite you to follow this link.