Startup Medicare Advantage (MA) insurer Zing Health banked a $140 million funding round it intends to use to enhance its special needs plans.
The round was led by Health 2047 Capital Partners, CRG and First Trust Capital Partners LLC, according to an announcement, with existing investors Newlight Partners, Town Hall Ventures, Health 2047 and Leavitt Equity Partners also participating.
Zing Health was founded in 2019, born out of the American Medical Association's Health 2047 innovation lab. Since 2023, it has become one of the fastest growing MA plans in the U.S., with many of its members selecting to enroll in chronic special needs plans, which are tailored to seniors with chronic conditions.
The additional funding will allow the company to grow the reach of its special needs plans as well as make investments in continuing to improve its member experience, Zing said.
“Medicare Advantage is a superior program that can provide enhanced outcomes for seniors. However, the industry today does not do enough to tailor plans and member experience to individuals’ needs,” said Andrew Clifton, CEO of Zing Health, in the press release. “Through the delivery of CSNP plans to underserved seniors, we are providing the appropriate benefits to improve health outcomes and leveraging technology to ensure members receive high quality, value-based care through a seamless member experience."
While many seniors have chronic needs, Zing Health said many MA plans are not designed to meet their particular challenges. An analysis from KFF shows that just 2% of MA enrollees are in a chronic special needs plan.
Zing's plans are built on value-based care models, catering to unique chronic issues and connecting members with physicians and specialists that are aligned on their care.
"From inception, Zing has focused on caring for seniors and bringing them to the best comprehensive, personalized care," said Srdjan Vukovic, partner at Newlight Partners, in the release. "We are excited to continue to support the development of this powerful platform and its innovative and collaborative approach to managed care.”