Devoted Health Secures $175M in Funding to Boost Medicare Advantage Innovation

Medicare Advantage startup, Devoted Health, ended 2023 on a high note by securing $175 million in Series E funding. This significant milestone makes it one of the largest funding rounds of the year and reflects the company's commitment to growth and innovation in healthcare. The tech-enabled startup aims to revolutionize the Medicare Advantage sector, potentially leading to new developments and advancements in the industry.

Devoted Health: An Overview

Devoted Health is a healthcare insurance tech company that provides 'all-in-one' care for older Americans. This is achieved through Medicare Advantage coverage, virtual and in-home care, and partnerships with leading providers. Currently, Devoted Health serves over 140,000 members across 299 counties in 13 states, marking a year-over-year growth of more than 70%. This impressive growth rate is a testament to the company's commitment to innovative healthcare solutions and member satisfaction.

Increasing Star Ratings

The company's consistent efforts to improve its services and care have not gone unrecognized. Devoted Health's Medicare Advantage Star ratings have indeed increased, reflecting the high-quality services it provides. Its tech-enabled preventative care services have shown positive outcomes for members, suggesting that technology plays a crucial role in improving healthcare services and patient outcomes.

Funding and Valuation

The $175 million funding round was led by a syndicate of investors, including The Space Between, Highbury Holdings, GIC, Stardust Equity, Maverick Ventures, and Fearless Ventures. This funding round follows a successful $1.15 billion Series D funding round in October 2021. The deal values Devoted Health at $12.9 billion, a significant increase from the 2021 valuation. The fresh funding will be used to support Devoted Health's growth plans and expand its tech-enabled preventative care services to more members across the states.

Shifting Towards Profitability

The insurtech sector is shifting towards a more grounded profitability model in 2023, and Devoted Health is no exception. The company's offerings combine Medicare Advantage plans with virtual and at-home care, a model that has proven successful given the company's over 70% year-over-year membership growth. With the additional funding, Devoted Health is well-positioned to continue its trajectory of growth and innovation, providing even better care for its members while also increasing profitability.

Devoted Health's successful funding round and its ongoing growth signify an exciting future for the company and the healthcare sector at large. By leveraging technology and innovative care models, Devoted Health is truly devoted to transforming the Medicare Advantage landscape and providing high-quality care to older Americans.