As more Americans find themselves shopping for health insurance, there is increasing demand for technology that can help make the right choice.
One Miami company is poised to capitalize on the trend — and investors are taking notice.
On Thursday, Midtown-based HealthCare.com announced it had raised $18 million from a group of investors that includes Second Alpha, AXIS Capital and CNO Financial Group. The funds will be used to expand Healthcare.com’s team to meet the demand of users flocking to the site.
“Health insurance is complex, especially if you’re not in a group plan, or if you’re a gig-economy person,” said CEO Jose Vargas. “So buying insurance is difficult, there are many choices, figuring out the cost and which benefits. We built Healthcare.com to be a recommendation tool to help find the right fit for them.”
The marketplace for health insurance inquiries continues to expand, especially after the advent of the Affordable Care Act, otherwise known as Obamacare, which moved the concept of shopping online for health insurance into the mainstream.
And when it comes to shopping online, individuals still seek out sites like Booking.com, which happens to be chaired by Jeff Boyd, an initial investor in Healthcare.com. Boyd could not immediately be reached for comment.
Lead investor Second Alpha specializes in tech businesses. Among its most successful investments is EverQuote, an online auto insurance marketplace that went public last year and is valued at more than $760 million.
“Second Alpha is pleased to back HealthCare.com and its entire team, who have demonstrated market leadership and momentum while building a sustainable and profitable InsurTech company,” Jim Sanger, managing partner of Second Alpha Partners, said in a statement. “Applying technology and data to help consumers navigate and enroll in the best health insurance or Medicare plan is a massive and exciting opportunity.”