Bright Health; Alex Wong/Getty; Clover Health; Oscar Health; Shayanne Gal/Business Insider
Bright Health CEO Bob Sheehy, Devoted Health co-founder and executive chairman Todd Park, Clover Health CEO Vivek Garipalli, and Oscar Health CEO Mario Schlosser.
- A crop of health insurance companies - Oscar Health, Devoted Health, Bright Health, Clover Health, and Alignment Healthcare - have raised a combined $3.2 billion to use technology to build new kinds of health-insurance plans.
- We took a look at their financials through the first three quarters of 2019.
- Most insurers posted deeper net loss than the same period a year prior as many look to make ambitious expansions into new states and markets.
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Health insurance startups just came out with their third-quarter financial results for 2019.
The startups are taking on some of the biggest companies in the US, like UnitedHealth Group and CVS Health. They're trying to get a foothold in massive insurance markets, with the bet that technology can help them provide better care to their members.
Business Insider looked through regulatory filings of five startups - Oscar Health, Devoted Health, Bright Health, Clover Health, and Alignment Healthcare - to get a sense of how they fared in the first nine months of this years
Oscar, Bright, and Clover each posted steeper net losses than a year ago, while Alignment's results improved sharply. In its first year offering plans, Devoted posted a net loss as well. The startups mainly sell health insurance to individuals in the Affordable Care Act's markets and to seniors in the form of Medicare Advantage health plans.
The companies have been raising funds from investors to support their growth. In August 2018, Oscar Health raised $375 million from Alphabet as it gears up to get into the Medicare Advantage market in 2020. Devoted Health in October 2018 raised $300 million ahead of launching its first Medicare Advantage plans in Florida this year.
Bright Health, a Minneapolis startup that provides individual and Medicare Advantage plans, in November 2018 raised $200 million. Clover Health in January raised $500 million.
Alignment is backed by private equity firms General Atlantic and Warburg Pincus and has raised more than $200 million.
The slides below have more information about each company's funding, financials, and expansion plans.
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