Fresh off generating $180 million in a new funding round, the HealthCare.com team is said it is “committed to changing the U.S. consumer’s relationship to their healthcare, creating solutions that make it easy to discover, choose, buy and use health insurance and other healthcare-related products across every life-stage.”
New York City and Miami-based HealthCare.com, a data-driven insurtech platform, announced this week the closing of $130 million in Senior Non-Convertible Preferred and more than $50 million of Series C Preferred equity in an oversubscribed round led by funds managed by Oaktree Capital Management, L.P. (“Oaktree”). Existing investors Axis Capital, Second Alpha and Link Ventures participated in the financing, as did founders.
“We are thrilled to partner with premier investors who recognize that HealthCare.com is positioned for its next phase of explosive growth,” said Don Loonam, CEO of HealthCare.com. “There is a crisis of cost, transparency and access stemming from complexity and a slow pace of change in healthcare and health insurance. The consumer is at the center of our offering, and our ultimate product is their end-to-end healthcare experience. We aim to create an iterative relationship with the consumer that will span decades, improving lifelong wellness.”
Leveraging its deep data assets and AI algorithms, HealthCare.com said it matches individuals to an increasingly wide array of products in the healthcare space, including its own proprietary insurance plans and customizable insurance product bundles.
The data-driven platform includes multi-product purchase options in one single transaction. As a result, the company is growing rapidly. In the last year the company said it has helped millions of people connect to a healthcare product and consistent improvements in consumer experience have resulted in direct-to-consumer enrollments up 97% in 2021.
“HealthCare.com is changing consumer behavior by disrupting the U.S. healthcare markets, creating new products and efficiencies with the objective of empowering consumers,” said Oaktree’s Brian Laibow. “Oaktree is excited to partner with the HealthCare.com team to continue scaling the company in its next phase of growth.”
“We’ve partnered with HealthCare.com since 2016 and have witnessed the company’s tremendous growth over the last couple of years,” added AXIS Capital’s Linda Ventresca. “The company’s ability to rapidly develop new proprietary insurance products and its innovative distribution model, along with its ability to quickly scale with the use of technology, allows it to solve complex challenges in the health insurance ecosystem.”
The company plans to accelerate its investment in data science, product development, and engineering and will also hire for several key roles as it works to close the gap between healthcare consumers’ needs and their access to the best options.
HealthCare.com’s distributed workforce of more than 370 employees has increased 130% since January 2021. The team is based in more than 15 states, as well as Guatemala, Thailand, and the Netherlands.
The original co-founders of HealthCare.com, including Jeff Smedsrud, Jose Vargas and Howard Yeh all remain active in senior leadership roles within the company. In conjunction with the financing round, Brian Laibow, Managing Director and Co-Head of North America for Oaktree’s Global Opportunities strategy, and Linda Ventresca, Chief Strategy Officer for AXIS Capital, a leader in specialty insurance and global reinsurance, have joined the HealthCare.com Board of Directors.