Weeks after laying off one-fifth of its workforce, health insurance brokerage GoHealth closed a $50 million private investment round.
According to a filing with the Federal Communications Commission, more than half of the investment came from the Indianapolis-based insurance giant Anthem, which was recently re-branded to Elevance Health.
In a release, GoHealth said the capital will fuel additional investments in new technologies and increase the health of its balance sheets.
The infusion comes after the company laid off approximately 800 agents and support workers early last month. GoHealth generated $270.6 million in revenue during the first quarter, but its losses increased six-fold to $37.2 million.
The company said the outside investment “enhanced its already strong balance sheet.”
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Some insurance companies have reined in their use of brokers this year, with marketplace insurers Molina Healthcare, Elevance Health, some Blue Cross and Blue Shield carriers, Bright Health Group and Oscar Health cutting commissions to agents and brokers in certain states.
Meanwhile, the online brokerage space has attracted attention from private equity and venture capital investors, interested in propping up startups or consolidating and digitizing independent operators.
According to the Digital Health Business & Technology database, digital Medicare broker Chapter raised $44 million in a Series B round this year led by Addition, with contribution from Narya Capital, a venture capital outfit co-founded by author JD Vance, the Republican Senate candidate in Ohio. Bain Capital invested $150 million to launch the online Medicare Advantage brokerage Enhance Health last year. Online Medicare plan seller EasyHealth raised $135 million in Series A funding last year.
This story first appeared in Digital Health Business & Technology.
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