Health insurance technology startup Clover Health has raised $35 million in Series B financing, the company said Wednesday.
The San Francisco-based tech firm is working to upend the traditional health insurance system by using real-time data analysis for predictive medicine and preventative care, which could ultimately reduce hospital admissions and the progression of chronic diseases.
Clover's software platform aggregates, structures and analyzes disparate sources of data, such as lab and radiology results, prescriptions, EMRs, customer service interactions and home visits.
Clover's pitch is that this can save money for both the patient and the insurance company (i.e. Clover) by identifying potential health risks and filling gaps in care before a health condition results in a hospital admission.
Clover's insurance falls under Medicare Advantage, a federal program for people 65 and older or with certain disabilities. This particular type of plan allows a private insurance company to contract with Medicare to administer coverage. The government subsidizes the premium and pays all the claims administered by the private insurers.
Clover's technology-driven approach to health insurance has piqued the interest of some heavyweight investors since its inception two years ago. Sequoia Capital, which led Clover's Series B, was an early backer of companies like Google and Amazon.
And it was just a few months ago when Clover secured $100 million in Series A led by First Round Capital, which has funded an elite group of startups including Uber, Warby Parker and Square.
Obviously, Clover faces a mountain of competition in the $220 billion health insurance market, primarily from industry stalwarts such as United and Cigna. There's also Oscar Health, a Google-backed insurance upstart geared toward millennials.
What's more, Clover is only available to customers in a handful of New Jersey counties, so it's got a long expansion road ahead. But Clover says the latest funding round will help the company do just that.