NEWS: Health Insurance Company That Caters to the Cultural Needs of Its Clients Raises $20M. Clever Care Health Plan Raises Funds From Previous Lead Investors.
Medicare Advantage is the fastest growing segment in health insurance. A health insurance company focused on these type of health plans raised $20 million in a Series A round.
Clever Care Health Plan received the funding, which was led by Norwest Venture Partners with participation from Global Founders Capital, according to an April 24 press release.
This round follows a $6 million seed investment from the same lead investors, bringing total funding to $26 million.
This is the second time recently that an OC health insurance company focusing on Medicare Advantage has raised funds. In March, Alignment Healthcare raised $135 million. See article on that here.
Norwest and GFC said they invested in Clever Care in part because of the “vast managed care experience of the three founders and their experience with launching and managing new health plans.”
The financing will be used to set up a California Medicare Advantage health plan and hire staff for its two offices in Little Saigon in OC and Arcadia in LA County.
Clever Care, with HQ in Westminster, plans to support the Centers for Medicare & Medicaid Services’ efforts in delivering high-quality member experience, while reducing healthcare cost through benefit design within its provider network.
Myong Lee, one of the founders, said he felt there were challenges for his parents to access healthcare through an interpreter. He also noticed that existing Medicare Advantage provider directories have a limited number of providers who understood his parents’ culture and lifestyle, which made it harder for them to access healthcare on their terms.
So, Clever Care was founded to assist members who are looking for a Medicare Advantage plan that understands their cultural needs.
“Medicare spending was 15 percent of total federal spending in 2018 and is projected to nearly double due to the retirement of the Baby Boom Generation and the rapid growth of per capita healthcare costs,” Sean Doolan, healthcare partner at Global Founders Capital, said in the release.
About Norwest Venture Partners
Norwest is a leading venture and growth equity investment firm managing more than $9.5 billion in capital. Since our inception, we have invested in more than 600 companies and partner with over 150 active companies currently in our venture and growth equity portfolio. The firm invests in early to late stage companies across a wide range of sectors with a focus on consumer, enterprise, and healthcare. We offer a deep network of connections, operating experience, and a wide range of impactful services to help CEOs and founders scale their businesses. Norwest has offices in Palo Alto and San Francisco, with subsidiaries in India and Israel.
About Global Founders Capital
Global Founders Capital (GFC) is a globally oriented early stage venture capital firm that supports exceptional founders over multiple stages throughout their entire company lifecycle. With over $2 billion in capital under management, GFC has invested in more than 200 companies to date across all categories, including enterprise, consumer and healthcare. GFC has over sixteen offices throughout the world.
About Medicare Advantage
Medicare Advantage Plans are a type of Medicare health plan offered by a private company that contracts with Medicare to provide all your Part A and Part B benefits. Most Medicare Advantage Plans also offer prescription drug coverage.