Becker's Healthcare March 20, 2023
Jakob Emerson

Medicaid startups receive significantly less outside investment compared to Medicare Advantage organizations, but there’s still key opportunities to innovate under the program and serve enrollees in new ways.

According to a Feb. 27 article in Health Affairs, the top 10 MA-focused startups have raised more than $20 billion combined in venture funding, compared to $1.5 billion for the top 10 Medicaid-focused startups. But in 2021, CMS spent $734 billion on Medicaid, compared to $427 billion on MA in 2022.

“Medicaid is ripe for innovation, as startups serving Medicaid enrollees have received an order of magnitude less funding than their MA peers, despite almost double the market size,” the authors wrote. “COVID-19 has removed cultural and regulatory barriers to technological adoption,...

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