AllyAlign Health, a Medicare Advantage insurance company, has raised $300 million in a new funding round, according to Axios.
The round was led by global venture capital firm New Enterprise Associates, and included participation from Oak HC/FT, Town Hall Ventures, as well as existing investors Heritage Group and Ziegler.
Richmond, Virginia-based AllyAlign Health works with long-term care providers and senior living facilities to create value-based care models for the populations they serve. It manages Medicare Advantage, institutional special needs plans, chronic care special needs plans for dementia and dual-eligible special needs plans.
The company will use the new funds to fuel its growth and invest in its employees, partners and technology.
“We’ve closely followed the evolution of value-based care in the long-term care setting over the years and are thrilled to partner with AllyAlign to expand and scale their services,” said Mohamad Makhzoumi, general partner and head of global healthcare investing at New Enterprise Associates, in a news release. “AllyAlign is poised to transform the senior living industry and we’re excited to support this next phase of growth, allowing for better care for the U.S. senior population.”
In addition to the funding news, AllyAlign announced a change in leadership.
Mark Price will take over as CEO of the company, succeeding founder Will Saunders. Price was formerly president of the Nevada region for Salt Lake City-based Intermountain Healthcare, and he has prior senior leadership experience at DaVita, ChenMed and Bain and Company.
Medicare Advantage enrollment has nearly doubled over the last decade, with 26 million — that is, 42% of all Medicare beneficiaries — enrolled in these plans as of early 2021, according to a report by Better Medicare Alliance. That figure is expected to rise to 51% by 2030 per Congressional Budget Office projections.
As a result of this promising growth, activity in the Medicare Advantage market has been heating up. Insurance startups, like Oscar Health and Bright Health, that offer Medicare Advantage plans have made major moves in recent months, including going public.
Not only that, last week Medicare Advantage insurance provider Zing Health Enterprises, announced plans to acquire Lasso Healthcare Insurance Co., giving Zing a national footprint.
Picture: Feodora Chiosea, Getty Images