Alignment Healthcare, a Medicare Advantage (MA) insurer that relies on a tech platform to manage its members' shifting data in real time, has announced $135 million in new funding. The Series C round was backed by Fidelity Management & Research Company, Durable Capital Partners L.P. and multiple funds and accounts advised by T. Rowe Price Associates.
WHAT THEY DO
Active within California (and as a partner in North Carolina), Alignment differentiates its approach to MA coverage in two major areas. On the member's side, the payer offers an "on-demand concierge" system where seniors can speak to a care coordinator or clinician 24-7 via phone. Meanwhile, a central proprietary Alignment Virtual Application platform collects member-specific data points and highlights shifts in a member's care needs.
"Caring for our nation's seniors has been Alignment's mission since our founding seven years ago when we launched a new model designed to reduce waste in the system by coordinating quality care around the patient, no matter where they are," John Kao, founder and CEO of Alignment Healthcare, said in a statement. "The growth we've since experienced is a testament to the impact our model is having in improving outcomes for seniors every day, and we look forward to continuing to advance and transform the health care experience."
Alignment has ballooned to more than 600 employees since its 2013 founding. According to the funding announcement, it has grown 43% annually since 2014 and anticipates nearly $1 billion in 2020 revenue. Today's announcement brings the company’s total raise to $375 million.
WHAT IT'S FOR
Alignment said that the new funds would help the insurer strengthen its tech platform and plan offerings as it looks to speed up its growth within the MA market.
Alignment's raise comes alongside a growing frustration with the health-insurance status quo, as well as a major uptick in investments for insurance startups leaning heavily on a tech component that either monitors member populations or helps to coordinate their care.
Most recently, tech-enabled insurance company Bright Health announced the close of a $635 million Series B in December, not long after word broke of the company's increasing push into several MA markets. Similarly, insurtech startup Clover Health brought in a $500 million round just over a year ago, while tech-savvy "payvidor" Devoted put together a $300 million Series B in late 2018.