Medicare Advantage insurtech company Devoted Health secures $175M

Tech-enabled Medicare Advantage company Devoted Health announced it scored $175 million in Series E funding at the end of 2023.

Venture capital companies Fearless Ventures, Highbury Holdings, Stardust Equity, GIC, Maverick Ventures and The Space Between led the round.

Andreessen Horowitz, Emerson Collective, Socium Ventures, The Private Shares Fund, and affiliated funds, General Catalyst, F-Prime Capital Partners and GreatPoint Ventures also participated in the round. 

WHAT THEY DO

The insurtech company offers a stack of healthcare services to older adults, including Medicare Advantage health plans, partnerships with providers, and its in-house virtual and at-home care provider, Devoted Medical. 

The company was founded in 2017 by Todd Park, who previously cofounded Athenahealth and Castlight Health, and his brother Ed Park, who held top positions at Athenahealth. 

“In a healthcare system that isn’t always accessible or easy to navigate, we at Devoted Health are profoundly honored to provide each member with the same quality of care and service we’d want for our own families,” Ed Park, CEO of Devoted Health, said in a statement.

“It’s deeply gratifying to have so many others believe in the promise of our model, and we’re very excited to bring the love and world-class care that is Devoted to more and more Americans,” 

MARKET SNAPSHOT

In 2021, Devoted Health scored $1.15 billion in Series D funding to support nationwide expansion. The company said in a statement that as of December 2023, it served more than 140,000 members in 299 counties across 13 states in the U.S. 

Devoted was one of numerous companies, such as OpenAI and Google, that signed on to join President Biden’s commitment to ensuring the safe development of artificial intelligence.

In October, Devoted Health was one of 31 contracts that received a five-star rating from the Centers for Medicare and Medicaid Services’ Medicare Advantage, Part C and Medicare Part D Star Ratings, which rate MA plans by the quality of health and drug services received by consumers.