Decacorns: Devoted Health Focuses on Simplifying Medicare Insurance

According to a recent report, the global InsurTech market is estimated to grow at a whopping 46% annually to reach $114 billion by 2030 from $3.77 billion in 2021. Within the industry, the health care segment is expected to grow to $32 billion by 2030. Waltham, Massachusetts-based Devoted Health is a comparatively smaller player in the market. But it is expanding its geographic footprint one state at a time.

Devoted Health’s Offerings

Founded in 2017 by Athenahealth alums, Edward Park, Jeremy Delinsky, and Todd Park, Devoted Health is an all-in-one healthcare company that works to improve the health and well-being of older Americans through its integrated healthcare solution. Devoted Health believes that healthcare today is confusing, expensive, and impersonal. To simplify these services, it has integrated Devoted Health Medicare Advantage plans, access to top local providers alongside virtual and in-home care delivered by Devoted Medical, full-service guides, and world-class technology onto a single platform.

It has created a combination of services that include Medicare Advantage health plans, partnerships with providers and its own in-house virtual and at-home care provider, Devoted Medical. Its services are powered by Orinoco, its end-to-end data analytics platform. Devoted Health allows users to shop for Medicare plans to cover medical issues, such as dental, prescriptions, and telehealth visits. It also guides users to necessary medical documents and forms, and informs them on their coverage rights.

Devoted Health’s Financials

The company currently operates across five states – Florida, Texas, Ohio, Illinois, and Arizona. It launched its offerings in a few counties in Illinois earlier this year. It has grown its membership to over 40,000 members as of June 2021. The company does not disclose detailed financials, but reports suggest that for the first six months of 2021, its revenues had grown 128% to $247.3 million.

Devoted Health has raised $2 billion in five rounds of funding from General Catalyst, GIC, Jaws Ventures, Andreessen Horowitz, Frist Cressey Ventures, SoftBank Vision Fund, PremjiInvest, IONIQ Growth, NextView Ventures, and Uprising Ventures. Its most recent round was held in October 2021 where it raised $1.2 billion at a valuation of $12.7 billion.

Devoted Health faces stiff competition in the InsurTech market. There are larger players like Oscar Health, Clover Health, and Bright Health that are all fighting for the same market. Both Oscar Health and Bright Health also offer commercial insurance products, besides the Medicare product.

Photo Credit: mohamed Hassan from Pixabay

This segment is a part in the series : Decacorns