Payers, Startups

Athenahealth cofounders launch insurance startup aimed at Medicare Advantage members

The business is poised to compete with Bright Health, which offers plans for individuals and Medicare recipients, and Clover Health, a health insurance startup that focuses on Medicare members.

health insurance, Obamacare

There’s a new insurance startup focused on Medicare Advantage members. Devoted Health recently closed a $62 million Series A round which, combined with a previous Seed round, adds up to $69 million to date. It plans to roll out Medicare Advantage plans in 2019, according to the company’s website.

Cofounders Ed Park and Todd Park cofounded athenahealth. Ed Park,  the CEO, is also a former CTO for athenahealth. Todd Park, executive chairman, also cofounded Castlight Health and served as U.S. CTO, according to its website. Other staff includes Bob Kocher, a Venrock partner who is serving as chief medical officer. Former U.S. Chief Data Scientist DJ Patil serves as chief data scientist with the business. Among the board members are former U.S. Senator and majority leader Bill Frist, Kathleen Sibelius, a former Secretary of Health and Human Services and Venrock Partner Bryan Roberts.

Devoted spokesman Kenneth Baer confirmed in an email that the company closed the Series A round to build and develop the team, technology and operations. Venrock is the lead investor in the business with other institutional investors and individuals participating in recent financial rounds.

Like other insurance startups such as Oscar and Bright Health and an increasing number of established insurers, Devoted Health enlists telemedicine to serve its members, but Devoted uses it for urgent care or remote expert second opinions, according to its website. It also offers house calls.

The business is poised to compete with Bright Health, which offers plans for individuals and Medicare, and Clover Health, health insurance startup that focuses on Medicare members and is currently available in Georgia, New Jersey, Pennsylvania, and Texas.

The company claims that its the business is driven by its aspiration to treat members as they would treat their own moms and dads. It’s the kind of folksy marketing pitch that might appeal to seniors.

Photo: Getty Images