(This story is from our new Health Tech newsletter. If you’d like to sign up, just click here.)
Devoted Health just nabbed another $112 million in venture funding to fuel its push into seven new states, Endpoints News has learned exclusively.
The additional Series E money, backed by The Space Between, Cox Enterprises, and White Road Capital, comes on the heels of the health insurance startup’s $175 million raise announced in December and brings its total Series E funding to $287 million, according to the company.
The startup’s post-money valuation is $13 billion. It has raised almost $2.3 billion total.
Devoted, which offers Medicare Advantage plans for seniors and provides medical care in 13 states, has filed to expand into seven new states including Arkansas, Georgia, Indiana, Kentucky, Mississippi, Missouri and Washington, and 307 additional counties in 2025, a company spokesperson said.
The moves are in contrast to other young insurance companies that have slowed growth or pulled back from some markets to try and become profitable. And giant Medicare Advantage insurers, including CVS Health’s Aetna and Humana, also have warned they’ll exit counties and pare back benefits next year in response to rising medical costs and lower federal payments.
Devoted, based in Waltham, MA, was founded in 2017 by Todd Park, a former US chief technology officer and Athenahealth co-founder, and his brother Ed Park, a former Athenahealth executive who serves as Devoted’s CEO. It’s one of a crop of insurers that says it uses homegrown technology to provide better healthcare experiences and outcomes for its members.
Devoted has grown quickly while managing to keep its losses relatively narrow, according to a recent Endpoints analysis of the company’s state filings. Its health plan revenue hit $1.9 billion in 2023, up 76% over the year before, while its net loss was $33.7 million, compared with a loss of $32.2 million in 2022. The filings provide only a partial picture of the startup’s finances, however.
Devoted said Friday that its membership totaled about 227,000 as of July, up from about 142,000 in December.