EasyHealth, a Medicare-focused insurance brokerage, raised $135 million in new financing, according to a news release Thursday.
Anthemis Group and QED Investors led the funding round, including equity and debt, with additional investments from Brewer Lane, Healthy Ventures, Nationwide Ventures, Operator Partners and Victory Park Capital. The company plans to use the new money to grow its business.
EasyHealth pitches itself as a tech-enabled insurance brokerage and platform that makes it easier for people on Medicare to enroll in Medicare Advantage, supplemental and prescription drug coverage. It aims to help insurers better understand their members by carrying out home visits and using artificial intelligence to provide health plans with more information about people enrolling in coverage.
“To identify potential chronic conditions and surface vital insights that enable plans and providers to personalize care, EasyHealth’s proprietary health risk analytics engine ingests and scans disparate historical medical records using deep learning. For plans, the implications for risk adjustment, STARS, HEDIS, CAHPS, are profound,” the news release said.
Insurers are investing heavily in the lucrative and growing Medicare Advantage market, Modern Healthcare reported. Since the pandemic began, older adults have been forgoing care, making it harder for insurers to anticipate their current and future medical needs. Incomplete information can lead to inaccurate risk scores, cutting into Medicare reimbursements under the risk-adjustment program.
Startups that can help insurers fill in those information gaps stand to win big, despite growing scrutiny of the Medicare Advantage program.
Venture capitalists invested more than $1 billion in analytics companies during the third quarter of the year, growing 83% compared to the second quarter, according to data from Digital Health Business & Technology. Investors have poured more than $2.5 billion into analytics since the start of the year. Only telemedicine received more funding during the first nine months of 2021, bringing in $6.6 billion.