Transcarent, a healthcare platform for self-insured employers, scored a whopping $200 million in Series C funding. Kinnevik and Human Capital led the round, with participation from Ally Bridge Group, General Catalyst, 7wireVentures and existing Transcarent investors.
Led by Livongo vet Glen Tullman, the company emerged out of stealth in March with $40 million in funding. Over the summer, the company raised an additional $58 million in Series B funding, led by General Catalyst and 7wireVentures.
WHAT IT DOES
The company is focused on the self-insured employers and their employees. Members are able to virtually access care 24/7. A health concierge is also able to talk to patients and help them plan surgeries and care paths.
The company also works to lower medication costs. For example, in October the company inked a deal with Walmart in order to lower prescription drug costs and other prices for its members in the self-insured market.
Transcarent works on a fully at-risk model where employers have no upfront or per-employee, per-month fees. It also pays health systems upfront for surgeries.
WHAT IT’S FOR
While the company did not specify what the funding would be used for, it’s clear that it is looking to grow.
“Health consumers want an experience they can understand and feel comfortable with, that provides unbiased information, trusted guidance, and easy access to high value care and that always puts quality first,” Glen Tullman, chief executive officer of Transcarent, said in a statement.
“They want better solutions for everyday care, for medications, for surgeries, for care that is delivered where and when they need it, ideally at home and not always during the day, and for high quality solutions for complex care like cancer. And they want all of that in one place. This is long overdue and, judging by the interest we’re receiving in the market from all of us who pay for care and the companies that employ us, everyone likes what we’re doing.”
In recent years, a number of digital health startups focused on the payer space have emerged onto the market. For example, Clover Health, an insurtech company for Medicare Advantage plans, went public through a SPAC merger in 2020.
Oscar Health, another tech-first insurer, went public through an IPO in early 2021. This was followed by fellow insurtech company Bright Health hitting the New York Stock Exchange in June.