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Jun 10, 2021 - Health

Scoop: Venture firms' latest $300M Medicare Advantage bet

Tina Reed
Illustration of a tree with money as the leaves.

Illustration: Aïda Amer/Axios

Virginia-based AllyAlign Health, a Medicare Advantage insurance company focused on senior housing, just raised a nearly $300 million funding round led by New Enterprise Associates.

Why it matters: It's the latest example of investor interest in the Medicare population, and more specifically, in Medicare Advantage.

NEA officials said they were interested in targeting the quality of care coordination in senior living facilities using value-based care and tech-enabled tools seen in other care models.

  • "This is addressing a massive gap in care that the pandemic has exposed," Mohamad Makhzoumi, head of NEA's Global Healthcare Investing practice told Axios.

AllyAlign is still a relatively small company operating in 22 states with 24 Medicare Advantage Organizations and about 12,000 members.

  • The growth round included participation from Oak HC/FT, Town Hall Ventures, and existing investors Heritage Group and Ziegler.
  • Mark Price — formerly president of the Nevada region for Intermountain Healthcare, with previous senior leadership roles at DaVita, ChenMed, and Bain and Co. — was named CEO.
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