Solera Health said it has attracted more than $40 million from Blue Cross and Blue Shield plans across the country including the venture capital armof Health Care Service Corp., the nation’s fourth-largest health insurer.
Solera has raised more than $72 million since the company was launched in 2015, but the latest round is significant because it comes from several Blue Cross and Blue Shield plans that cover about 30 million people across the country. And executives at these health insurers say they are impressed with Solera Health’s ability to connect patients and insurers to programs and providers that work to prevent chronic disease while addressing social determinants of health.
Health insurers are addressing an array of social determinants of health as insurers move toward paying for more than just medical treatment to improve health outcomes. Health insurers, including some of these Blues plans, are already paying for an array of services from food and nutrition to housing to make sure patients are getting the right care in the right place and at the right time.
“This new round of funding will allow Solera to scale beyond its proven model for chronic disease prevention and management to address behavioral health and social determinants of health including food insecurity, medically tailored meals, transportation, falls prevention, and social isolation,” Solera and its Blues plan investors said in a statement announcing the latest round of funding. “Over the past 12 months, Solera’s network has evolved to support a broader array of lifestyle modification programs, including diabetes management, hypertension, stress, sleep, tobacco cessation, and weight management.”
Solera founder and CEO Brenda Schmidt said the investment by the health plans is a critical “vote of confidence” in the company’s ability to “leverage a network of community and digital health solutions paid through medical claims for achieving clinical outcomes.” Solera is already managing more than 60 million health plan enrollees.
HCSC Ventures, the venture arm of Health Care Service Corp, led the latest round of financing. Health Care Service owns Blues plans in Illinois, Montana, New Mexico, Oklahoma and Texas. Other Blue Cross plans joining Solera’s latest funding round include: Horizon Blue Cross Blue Shield of New Jersey; Blue Cross and Blue Shield of Alabama; Blue Cross and Blue Shield of Kansas City; BlueCross BlueShield of South Carolina; and Blue Shield of California.
“Solera Health’s mission of improving people’s health by connecting them with a network of health care solutions is something that truly resonates with us,” said Sahil Choudhry, assistant vice president, corporate development and venture investments at HCSC Ventures said. “The company’s innovative network model has already helped millions of individuals change their habits and reduce their risk of developing chronic disease.”
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