- We took a look at how health insurance startups Oscar Health, Devoted Health, Bright Health, Clover Health, and Alignment Healthcare fared through the first half of 2020.
- The period reflects a time when the coronavirus pandemic hit, pushing the US into a recession, and leading many people to postpone routine medical visits and elective care.
- While large publicly traded health insurers beat expectations and posted major profits in the second quarter of 2020, the startups had more mixed results, with some posting net losses as others saw much higher profits.
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Health insurance startups just came out with their financial results for the first half of 2020.
Business Insider looked through regulatory filings of five startups — Oscar Health, Devoted Health, Bright Health, Clover Health, and Alignment Healthcare — to get a sense of their performance.
The first half of 2020 was marked by the coronavirus pandemic hitting the US, pushing the country into a recession, and leading many Americans to postpone routine health appointments and procedures in an effort to slow the spread of the novel coronavirus.
The startups are taking on some of the biggest companies in the US, like UnitedHealth Group and CVS Health. Through the first half of 2020, the big insurers posted positive earnings, with United Health Group roughly doubling its profits over the same time period the previous year, and CVS Health beating expectations.
In the second quarter, the startups also announced expansion plans for 2021, with Oscar raised an additional $225 million from investors including Alphabet and General Catalyst.
The health insurance startups had mixed results. Most posting high net gains, while Devoted, posted net losses.