A few month after Oscar Well being introduced plans to boost as much as $ 1.05 billion in its deliberate preliminary public providing, rival Vivid Well being is making related plans.
Vivid Well being plans to boost at the least $ 1 billion in an IPO more likely to launch within the second quarter of this 12 months, nameless sources advised Bloomberg, which broke the information.
The corporate declined to verify or deny the Bloomberg report, telling MedCity Information by e-mail that it doesn’t touch upon “rumors or hypothesis.”
Minneapolis-based Vivid Well being, one in all many insurance coverage startups combating for market house, may very well be valued at nicely above $ 10 billion, doubtlessly as a lot as $ 20 billion, Bloomberg reported. JPMorgan Chase & Co., Morgan Stanley and Barclays Plc are reportedly advising the corporate on the sale.
Co-founded in 2015 by former UnitedHealth Group CEO Bob Sheehy, Vivid Well being now operates in 13 states and provides particular person, household, small enterprise and Medicare Benefit plans. Works with native companions, together with well being methods, accountable care organizations, and doctor teams, to develop and handle supplier networks. It additionally provides an IT platform that can be utilized to trace healthcare prices.
Final September, the corporate closed a $ 500 million financing spherical led by Tiger International Administration, T Rowe Value and Blackstone. On the time, it stated it deliberate to make use of the funds to broaden into six new markets between Florida, North Carolina and Illinois. The corporate additionally stated it will supply absolutely insured small enterprise plans in Denver, Nebraska, in addition to Nashville and Memphis in Tennessee.
Most lately, Vivid Well being introduced report membership progress, reporting that it’ll present well being advantages protection to greater than 500,000 shoppers.
As well as, the insurance coverage firm has entered into an settlement to accumulate Central Well being Plan of California, Inc. Upon completion of the transaction, Vivid Well being will serve roughly 110,000 individuals inside its Medicare Benefit enterprise.
Vivid Well being’s progress is exploding, not not like its friends. Along with Oscar Well being’s billion greenback IPO announcement, insurance coverage startup Sidecar Well being, achieved unicorn standing after a $ 125 million Collection C funding spherical and Alignment Healthcare launched its extremely anticipated IPO, Via which it intends to boost round half one million .
Curiosity and funding within the subject of insurance coverage know-how is clearly on the rise. Final 12 months, insurtech’s annual funding reached an all-time excessive of $ 7.1 billion throughout 377 offers, representing a 12% improve in funding and a 20% improve in offers in comparison with 2019, in accordance with a report from CB Insights.
Photograph: AndreyPopov, Getty Photographs