Insurance startup Clover Health said on Oct. 6 that it plans to merge with publicly traded blank-check company Social Capital Hedosophia Holdings Corp III, giving it a stock market listing and a valuation of $3.7 billion including debt.
Clover provides insurance via Medicare Advantage, a government-backed scheme for typically older patients administered by private companies. Physicians who treat Clover patients use a software system that collates and analyzes a variety of patient data. Medicare Advantage has been growing rapidly, with 26.9 million patients expected in 2021 – a 44% increase on 2017’s level. Clover cites data predicting the market will more than double to $590 billion by 2025.
Clover is loss-making, and expects to be until at least the end of 2022. It made $457 million of revenue from patient premiums in 2019, which it forecasts will reach $664 million in 2020.
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