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. 

"With participation from several new investors, existing investors and several of the country’s most innovative and forward-thinking health systems like Northwell Health, Intermountain and Rush, this successful Series C round signals growing demand from a broad range of stakeholders for solutions that align incentives across the healthcare ecosystem, drive forward value-based care initiatives and finally deliver on the promise of a better care experience for consumers," Tullman said. 

"This new round of funding will enable Transcarent to further build out our growing ecosystem of organizations, all of whom have aligned visions and aligned incentives to achieve the ultimate goal – a better health and care experience for all. Continued expansion of engineering/product development, expansion of new growth channels like our recent Walmart partnership, and R&D along with strategic M&A to support our rapid growth."

MARKET SNAPSHOT 

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. 

Traditional insurers are also offering virtual-first health plans. For example, UnitedHealthcare and Cigna both launched tech-first plans.