The health insurer’s funding round signals confidence in the industry’s attempt at disruption.
The disruption-driven insurer Bright Health has raised $200 million in a Series C funding round that includes two new investors, continuing a lucrative year for innovative health insurance companies.
Two new investors, Declaration Partners and Meritech Capital, participated in the financing, along with existing investors Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates (NEA), Redpoint Ventures and Town Hall Ventures, according to an announcement.
“As a growth investment fund, Meritech is looking for opportunities to invest in fast-growing sectors whose potential to use technology will enhance the customer experience of large populations,” said Craig Sherman, managing director at Meritech Capital Partners.
He added that the data infrastructure Bright Health is building could produce better health outcomes for millions of Americans.
Mohamad Makhzoumi, general partner and head of healthcare services and healthcare IT investing at NEA, an existing investor in Bright Health, said that this financing puts Bright Health in a position to capitalize on its transformational medical cost management results.
With the funding, Bright Health plans to continue to disrupt the old healthcare model that places insurers at odds with providers, CEO Bob Sheehy said in a statement.
The company plans to triple its geographic footprint in 2019. Bright Health boasts a high re-enrollment rate and launched its Care Partner Health Plan Model in 2016, which works with one health system per market to offer integrated care. The plan allows for coordination of services and administration to optimize consumer and patient experience, the announcement said.
This is just one of the many major investments in a digitally driven or innovation-focused health insurance company over the past year.
Earlier this year, Oscar Health, a tech-focused health insurance company scored $165 million in funding to expand its business, which aims to use data science and technology to guide customers to more affordable, better doctors.
Another digital health insurance company, Alan, closed a $28 million funding round this April, and has raised $45 million to date from tech investors. Alan brings technology, data and design together to make the health experience easier and better for their users.
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