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March 01, 2018 at 03:47 PM
Clover Health, an insurance startup backed by Alphabet Inc., reduced its loss last year as the health care company seeks to inch its way beyond its first market in New Jersey.
Despite being one of the most richly valued health-tech startups in the U.S., Clover only offered insurance to seniors living in New Jersey, until a recent expansion to parts of Georgia, Pennsylvania and Texas. The New Jersey operation lost $22 million last year, an improvement from a $35 million loss in 2016, Clover said. Revenue grew to $267 million from $184 million.
Clover is privately held but agreed to share some financial information in an interview with Bloomberg. The narrowing loss is a bright spot in an otherwise rough period for the four-year-old startup. Clover’s Medicare rating was recently downgraded, and it has seen turnover in the executive ranks.
Some of America’s top technology investors are making a big bet on Clover. The company has raised $425 million from the likes of Sequoia Capital and GV, Alphabet’s venture capital arm. An investment last year valued the business at $1.2 billion.
Clover’s goal is to reduce insurance costs through the use of improved data analysis and preventative health measures. When it identifies potential problems with customers, it dispatches its own nurse practitioners and other professionals to homes to address health issues before they require more costly treatment. Clover only services members of the U.S. Medicare Advantage program, which has 18 million total members. The government pays the company for handling insurance claims for its 28,000 elderly or disabled customers with Medicare Advantage.
