We took a look at the latest financial results for health insurer Clover Health, which raised $500 million in January and laid off 25% of its staff in March
- Clover Health posted a $9.3 million net loss for the first quarter of 2019, according to regulatory filings reviewed by Business Insider.
- Clover sells private health-insurance plans to seniors, a product called Medicare Advantage.
- In March, the company said it was laying off 25% of its workforce, or about 140 employees, as part of a restructuring, shortly after raising $500 million.
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Clover Health seems to be holding steady even as it goes through some big changes.
For the first quarter of 2019, Clover generated $115 million in revenues across its health plans in seven states, according to two regulatory filings. The company sells private health insurance plans for seniors, a market known as Medicare Advantage.
Clover lost $9.3 million in the first quarter, according to state insurance filings reviewed by Business Insider. That's down from the $14.7 million the company lost in the first quarter of 2018.
The company paid out $109 million in medical expenses for its customers over the quarter, or about 95% of the premium revenue it took in, similar to its results from 2018.
Clover got its start selling Medicare Advantage plans in New Jersey, which remains the company's main market. The company also operates in Pennsylvania, Texas, Tennessee, Georgia, South Carolina, and Arizona.
Founded in 2014, Clover says it hopes to use data captured through its technology to improve patients' health. But pulling that off hasn't been easy.
When people in the US turn 65, they can choose to be part of either traditional Medicare or Medicare Advantage, which is operated through private insurers. It's a big market for startups like Devoted, Clover Health, and Bright Health - and soon, Oscar Health - but it's also a market with entrenched insurers like like Humana, UnitedHealth Group, and CVS Health.
Clover had 40,137 Medicare Advantage members at the end of the first quarter, up from 32,425 at the end of 2018.
Over the years, Clover has raked in $925 million in funding from investors, including a $500 million round in January.
In March, the company said it was laying off 25% of its workforce, or about 140 employees, as part of a restructuring. Clover said it would open a new office in Nashville, known for expertise in health IT and health insurance, to tap into a talent pool that better fits the skill set it's looking for than what's in the tech-focused Bay Area.
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