Insurtech platform HealthCare.com has closed a $180 million funding round for its AI-powered tools that connect consumers to health plans, boosting the company’s valuation to more than $1 billion.
The complexities in purchasing health insurance coverage can lead consumers to buy plans that don’t entirely fit their needs, according to the company’s LinkedIn profile.
HealthCare.com’s data-driven platform allows consumers to compare hundreds of plans side by side to find the coverage that’s right for them.
The platform matches consumers with healthcare products, including its own proprietary insurance plans and insurance product bundles, and allows customers to purchase multiple products in a single transaction.
The service has helped 5.6 million consumers find healthcare coverage in the last year, the company said in a statement.
Oaktree Capital Management led the oversubscribed round, which included $130 million in senior non-convertible preferred stock and more than $50 million in series C preferred equity.
Previous investors Axis Capital, Second Alpha and Link Ventures also participated in the round.
“There is a crisis of cost, transparency and access stemming from complexity and a slow pace of change in healthcare and health insurance,” said HealthCare.com CEO Don Loonam in a statement. “The consumer is at the center of our offering, and our ultimate product is their end-to-end healthcare experience. We aim to create an iterative relationship with the consumer that will span decades, improving lifelong wellness.”
Founded in 2014, the company will focus the infusion of capital on product development, engineering and data science as well as hiring for several open positions.
Its workforce has more than doubled since 2021 to more than 370 employees.
“We’ve partnered with HealthCare.com since 2016 and have witnessed the company’s tremendous growth over the last couple of years,” added Axis Capital’s Linda Ventresca. “The company’s ability to rapidly develop new proprietary insurance products and its innovative distribution model, along with its ability to quickly scale with the use of technology, allows it to solve complex challenges in the health insurance ecosystem.”
Several insurtech startups have picked up steam this year.
Just last week, Bright Health closed a $750 million funding round with participation from Cigna Ventures.
InsurMedix landed $65 million in November for its platform that helps consumers find coverage for fertility treatments.