The startup trying to prove that a tech company can run health insurance better than the incumbents. Devoted has raised $1.8 billion and is valued at $12.6 billion — because fixing Medicare is a $1 trillion problem. The Park brothers have serious credentials (former U.S. CTO + former Athenahealth COO) and the care quality metrics look strong. But health insurance is where ambitious startups go to die. The last company that promised to reinvent insurance with technology was Oscar Health. Its stock dropped 85% after IPO. Devoted has to be different, not just better-funded.
Founded
2017
HQ
Waltham, MA
Total Raised
$1.8 billion
Founder
Todd Park & Ed Park
Status
Private — valued at $12.6 billion (2021)
Website
www.devoted.comTHE ORIGIN STORY
Todd Park (former U.S. CTO under Obama) and his brother Ed Park (former Athenahealth COO) believed Medicare was broken.
Seniors were getting terrible care, insurers were cutting corners, and nobody was using technology to coordinate care. They started Devoted Health to build a Medicare Advantage plan from scratch — using technology to actually improve health outcomes, not just process claims.
WHAT THEY ACTUALLY DO
Medicare Advantage insurance premiums. Devoted Health is a full-stack health insurance company — they sell Medicare Advantage plans to seniors (65+), collect monthly premiums from CMS (Centers for Medicare & Medicaid Services), and manage care delivery.
Revenue comes from per-member-per-month payments from the federal government. Revenue exceeded $3 billion in 2024.
THE PRODUCTS
Devoted Medicare Advantage Plans (HMO and PPO), Devoted Care (care coordination), Clinical Guides (personal health coordinators), Devoted Doctors (in-home care visits), $0 premium plans with dental, vision, and hearing.
HOW THEY GREW
Expanding into more states and growing membership. Devoted launched in Florida and has expanded to 14 states.
They're targeting 100,000+ members by focusing on Medicare Advantage's fastest-growing markets. Also investing heavily in care delivery — employing clinical guides who proactively coordinate care for members.
THE HARD PART
Insurance is one of the hardest businesses to build. You need state-by-state regulatory approval, massive capital reserves, a provider network, and the ability to manage medical costs for a population of seniors with complex health needs.
Scaling while maintaining care quality and financial discipline is the existential challenge.
WHO BACKED THEM
Andreessen Horowitz, General Catalyst, F-Prime Capital, Uprising, Venrock
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