Health insurance startups like Bright and Oscar have raked in $3 billion in venture funding. Here’s how they fared through the first half of 2019.

Bright Health; Alex Wong/Getty; Clover Health; Oscar Health; Shayanne Gal/Business Insider

A crop of health insurance startups — Oscar Health, Devoted Health, Bright Health, and Clover Health — have raised a combined $3 billion to use technology to build new kinds of health-insurance plans.
We took a look at their financials through the first half of 2019.
The financial results were mixed, with some of the startups posting profits through the first half and others posting losses, financial filings show.
Click here for more BI Prime stories.

Health insurance startups just came out with their second-quarter financial results for 2019.

The startups are taking on some of the biggest companies in the US, like UnitedHealth Group and CVS Health. They’re trying to get a foothold in massive insurance markets, with the bet that technology can help them provide better care to their members.

Business Insider looked through regulatory filings of four startups — Oscar Health, Devoted Health, Bright Health, and Clover Health — to get a sense of how the startups fared.

The results were mixed, with Oscar and Bright reporting profits and Devoted and Clover posting losses for the first half of the year. The startups mainly sell health insurance to individuals in the Affordable Care Act’s markets and to seniors in the form of Medicare Advantage health plans.

Oscar also signed a second reinsurance agreement, this time with Berkshire Hathaway’s NICO subsidiary.

The companies have been raising funds from investors to support their growth. In August 2018, Oscar Health raised $375 million from Alphabet as it gears up to get into the Medicare Advantage market in 2020. Devoted Health in October raised $300 million in a round led by Andreessen Horowitz ahead of launching its first Medicare Advantage plans in Florida this year.

Bright Health, a Minneapolis startup that provides individual and Medicare Advantage plans, in November raised $200 million. Clover Health in January raised $500 million in a round led by Greenoaks Capital.

The slides below have more information about each company’s funding, financials, and expansion plans.

Bright Health posted a profit as it plots an ambitious geographic expansion.

Courtesy Bright Health

Minneapolis-based Bright Health, which provides health plans for individuals under the Affordable Care Act and to seniors inMedicare Advantage, posted a net gain of $11.7 million for the first half of 2019. The company made $118 million in revenue and recorded $80.1 million of medical claims.

Bright Health has a reinsurance agreement. Excluding that, the company made $151 million in revenue for the first half of 2019, according to a spokeswoman for the company.

Its membership more than doubled between 2018 and 2019. As of the end of the first half, it had 62,017 members, the majority of which were in the company’s ACA health plans for individuals and families.

Bright has ambitious plans to expand in 2020, The company said in July that will operate in parts of 12 states in 2020, roughly double its geographic footprint for 2019.

That’ll include specific cities and counties in Florida, Illinois, North Carolina, Oklahoma, and South Carolina as well as the whole state of Nebraska. It builds on Bright’s presence in Alabama, Arizona, Colorado, Tennessee, Ohio, and New York.

Clover Health posted a net loss for the first half of 2019.

Courtesy Clover Health

Clover lost $16.3 million in the first half of 2019, according to state insurance filings reviewed by Business Insider. The company sells private health-insurance plans for seniors, a market known as Medicare Advantage.

Clover generated $233 million in revenue across its health plans in seven states. The company paid out $219 million in medical expenses for its customers over the quarter, or about 94% of the premium revenue it took in, similar to its results from 2018.

The company recruited more members in 2019. Clover had 40,989 Medicare Advantage members at the end of the first half, up from 32,425 at the end of 2018.

It’s been a big year for Clover. In March, the company said it was laying off 25% of its workforce, or about 140 employees, as part of a restructuring. That came on the heels of Clover raising $500 million in January, bring the total funds the company has raised to $925 million.

Clover got its start selling Medicare Advantage plans in New Jersey, which remains the company’s main market. The company also operates in Pennsylvania, Texas, Tennessee, Georgia, South Carolina, and Arizona.

Devoted Health is looking at expanding beyond Florida as it works through its first year offering plans.

Alex Wong/Getty Images

Devoted was founded to sell Medicare Advantage plans, or private health insurance to US seniors, a market that’s growing rapidly. The company was valued at $1.8 billion, before it began covering a single customer.

For the first six months of 2019, the company posted a net loss of $14.9 million for its plans in Florida, according to the filings.

Devoted covered about 3,256 people by the end of June, up from 2,489 people at the end of March. In the first half of the year, the company took in $18.6 million in premium revenue and spent more than that, an estimated $21.2 million, on medical care in the first half of the year. Health insurers generate profits by spending less on medical care than they receive in premiums.

"While we are still in the early innings, we are very pleased with our launch and with our progress toward dramatically improving health care for seniors, and we are on target with respect to our long-term goals," Devoted spokesman Kenneth Baer said in a statement to Business Insider.

According to state filings, the insurer is looking to expand into Texas. Devoted declined to comment on its expansion plans.

See the rest of the story at Business Insider