Health insurers Health Care Service Corporation (HCSC), WellPoint and Blue Cross Blue Shield of Michigan (BCBSM) made equally-sized investments in US-based employer health insurance service Bloom Health on Tuesday.
HCSC and WellPoint are new investors but BCBSM’s venture capital unit, together with venture capital firm Sandbox Industries, previously invested in Bloom’s $5m series A round in January 2010. Bloom raised $7.5m in a December series B round where the investors were undisclosed, though signatories on the filing included board members from Sandbox and BCBS Ventures.
The precise figures for the current round were undisclosed but the firms now jointly own a majority stake in the company, though Bloom will remain a separate entity. The financing is intended to help create a private exchange for employers across the US to use in managing health insurance benefits for their employees.
Founded in 2009, Bloom Health helps employers restructure their health insurance schemes by linking their employees to personalized private plans that are sponsored by the client companies.
Ken Goulet, chief executive officer of WellPoint’s Commercial Business Unit, said: "We believe private exchanges will be an important solution as the rising costs of health care leave employers searching for more predictability in their health care spend. The combined leadership, technological capabilities, brand reputation and market presence make this a natural strategic fit to providing our customer base with the best value and their employees with convenience and choice."