Cigna Latest Health Insurer To Increase Venture Spending On Startups And Digital Tech – Forbes
Cigna is the latest health insurer to increase spending on startup businesses and digital health … [+]
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Cigna is the latest health insurer to increase spending on startup businesses and digital health with another $450 million headed to its venture fund.
Cigna announced plans to spend $1.25 billion in capital expenditures and an additional $450 million of funding to Cigna Ventures at a time health insurance companies are in a race to develop new technology, particularly in the digital health arena. Cigna said the $450 million additional commitment is a total number for its “second fund” and almost double the initial capital commitment of $250 million the insurer announced in 2018.
Already, other large health insurance companies including the Aetna unit of CVS Health, Anthem and other Blue Cross and Blue Shield plans are investing billions of dollars in entrepreneurial ventures, startups and partnerships. UnitedHealth Group’s Optum in 2017 launched Optum Ventures with an initial $250 million to develop early-stage healthcare companies and has gradually ramped up such funding.
In Cigna’s case, the company’s additional $450 million investment in Cigna Ventures will be focused on “insights and analytics; digital health and experience; and care delivery and enablement.”
Cigna said it has made 20 such investments in recent years that include an array of startups and companies such as “Ginger, Omada, Buoy, Cricket Health, BabyScripts and more,” a company spokeswoman said. “Cigna Ventures invests in areas of strategic interest to Cigna and where we can partner with an entrepreneur to help the start-up grow and also provide value to Cigna’s customers, clients and providers.”
