Technology-enabled health plan Curative has banked a $150 million series B funding round, bringing its valuation to $1.275 billion.
The company said in an announcement that the investment secures its unicorn status and emphasizes the interest in its new model, which offers health plans with $0 out-of-pocket costs. Members will not have to pay copayments, deductibles or coinsurance as long as they complete an annual preventive care visit called the Baseline Visit.
Curative said that the insurer has seen a 20% increase in primary care engagement, a 30% decrease in hospitalizations and up to 40% lower drug costs through this model.
"We’re accelerating the modernization of the member experience, expanding into new markets and scaling the impact we know the industry desperately needs," said Fred Turner, CEO and co-founder of Curative, in the press release. "The momentum is real, and employers, brokers and providers are seeing the value of a plan designed with their success in mind.”
TED Chairman Chris Anderson’s Upside Vision Fund led the Series B round, according to the announcement, with Justin Mateen, founder of JAM Fund, making a significant contribution.
Further investors in the round included Mike Novogratz of Galaxy Digital, Stanley Druckenmiller’s Duquesne Family Office, DCVC and Martin Varsavsky.
In the release, Anderson called the company's progress and growth "extraordinary."
"The healthcare industry is notoriously challenging with so many misaligned incentives," Anderson said. "To see Curative successfully setting a new standard for employer-based health insurance that actually makes people healthier—wow, that has been exhilarating."
Curative launched less than three years ago, according to the announcement, and has grown to serve more than 1,200 employer clients and to cover more than 165,000 members. The company said it plans to use the funds to continue expanding nationally, with near-term growth into the Mid-Atlantic region.
The company's services are currently available in Texas, Florida and Georgia.
Curative said that to continue its expansion, it will need to bulk up reserves to manage regulatory requirements and "maintain our long-term financial strength ratings." It also plans to deploy the funding to invest further in member engagement, AI enhancements and network development.
“For years, industry watchers and employers have talked about an inflection point where lack of innovation, rising frustration, and runaway healthcare costs would collide,” said Turner. “Curative is leading that change moment."