Health insurance startup Clover Health raised $100 million in a round led by First Round Capital, with participation from Athyrium Capital Management, the company’s founders and other individual investors. As part of the deal, Josh Kopelman, partner at First Round Capital; and Nat Turner, co-founder of Flatiron Health, joined Clover Health’s board of directors.
Founded in 2012, Clover is looking to bring a data-driven approach to healthcare for senior citizens.
“There is an urgent need to modernize the way our healthcare system addresses patients who arguably need the most help: the elderly and disabled,” the company’s CEO Vivek Garipalli said in a press release. “In order to do this, the insurer must take significant responsibility in helping improve patient outcomes, and move beyond ‘contractual innovation,’ which has created an unsustainable burden upon physicians.”
In the first half of 2015, Clover members had nearly 50% fewer hospital admissions.Clover tracks all the inputs of a person’s medical history from insurance claims and determines the highest-risk patients. From there, it works with those patients to help them lead a healthier lifestyle.
And this approach apparently works — in the first half of 2015, Clover members had nearly 50 percent fewer hospital admissions, and 34 percent fewer hospital readmissions than the average Medicare patient in the New Jersey counties the serves.
The company will use the new funds to scale in its initial market, expand to new markets and develop its clinical data platform.
Another new entrant to the insurance market is Oscar Health, which is targeting different demographic but is also relying on technology to outcompete existing players. It managed to attract the attention and funds from Google which poured $32.5 million into the company.