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.
I’m thrilled to join the board and lead the $300M series B investment in @DevotedHealth , leading the way to create a modern Medicare Advantage plan to solve the critical national challenge of how to improve care for **and** reduce cost. @a16z https://t.co/jRZjLRJG0t— Vijay Pande (@vijaypande) October 16, 2018
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.”
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.