- Health insurance startups are expanding rapidly across the US as they try to capture members in a lucrative, but crowded sector dominated by industry veterans.
- Business Insider combed through the financial reports of five hot insurance startups to understand how they fared in the first nine months of 2020, a period rocked by the COVID-19 pandemic.
- The insurers’ financial results were mixed. Three, including Bright Health, Devoted Health, and Oscar Health, reported mounting losses, while Alignment Healthcare and Clover Health posted profits.
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Venture capital-backed health insurance startups are rapidly expanding their footprints across the US in hopes of shaking up a sector dominated by veteran companies like Anthem, Cigna and UnitedHealthcare.
Some of these startups, including Oscar Health and Clover Health, are pushing into new cities and states in 2021. Others, like Bright Health, are launching into new business lines like employer-sponsored health plans.
Business Insider combed the financial reports of five young insurers vying for a piece of the lucrative, but crowded insurance sector. The financials were lodged at the National Association of Insurance Commissioners and California’s Department of Managed Health Care, or were provided by the companies.
The startups reported mixed results in the first nine months of 2020, a period rocked by the COVID-19 pandemic, which prompted patients to put off doctor’s appointments and other medical care. Large, publicly traded insurers’ financial reports show that people began seeing their doctors again in the third quarter.
Three insurers — Bright, Devoted Health, and Oscar — reported wider losses in the first three quarters of the year compared with the same period in 2019. Alignment Healthcare and Clover, which both focus on serving seniors, grew their profits.
Read more: One crucial number in health insurers’ financial reports reveals that people are going to the doctor again despite the pandemic.