Devoted Health storms into Medicare Advantage market, backed by $300M funding round

Health insurance benefits form
Devoted Health just closed a $300 million series B and began selling MA plans in Florida. (Getty/michaelquirk)

A much-anticipated health insurance startup officially launched its Medicare Advantage offerings in Florida buoyed by $300 million in new funding.

Devoted Health, co-founded by former Athenahealth executives Todd and Ed Park, announced (PDF) on Tuesday it would begin selling Medicare Advantage plans in eight counties in Florida. The $300 million series B funding round led by Andreessen Horowitz is a sign that investors believe the technology-enabled insurance startup can compete with the likes of insurance stalwarts like UnitedHealthcare, Humana and Cigna.

Devoted is trying to separate from the pack by pitching itself as a so-called “payvidor” offering healthcare services in the home in addition to partnering with physicians and hospitals in a traditional payer model.

“Having industry-leading technology is central to what we do,” CEO Ed Park said in a statement. “With our latest funding, we will continue to grow the world-class team building out our technology and operations and will expand Devoted into additional markets.”

RELATED: Former athenahealth founders close $62M funding round for Medicare Advantage startup Devoted Health

Medicare Advantage has been a lucrative program for insurers, and newly relaxed regulations have attracted to the market new entrants looking for ways to integrate home care and telehealth into plan offerings.

“We believe that the Devoted Health team has the experience and expertise to drive truly meaningful and scalable change in how health care is financed and delivered—from payment models to the patient experience and the technology needed to make it happen,” added Vijay Pande, a partner at Andreessen Horowitz.

All told, Devoted Health has raised nearly $370 million dating back to last year. The company has attracted some big names from the healthcare and technology worlds, with former U.S. Chief Data Scientist DJ Patil and former Department of Veterans Affairs Chief Technology Officer Marina Martin joining the executive team. Former HHS Secretary Kathleen Sebelius is a board member.

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