According to people familiar with the matter, Devoted Health is discussing a new funding round that would value the company at $25 billion. That is a significant leap from the $16 billion valuation it received in a round earlier this year.
The company is headquartered in Waltham, Massachusetts, and was founded in 2017 by Ed and Todd Park, both veterans of the healthcare industry. Ed Park previously served as chief operating officer at athencahealth, while Todd Park was the U.S. chief technology officer under President Obama.
Devoted declined to comment on the discussions.
Devoted's pitch to investors rests on a simple idea: by combining insurance and care delivery, the company can keep members healthier while controlling costs. Orinoco, its in-house AI system, is the engine that ties those two sides together. That combination is why it has been able to attract large funding rounds in a short period of time.
Medicare Advantage, the private version of the federal healthcare program for people 65 and older and those with disabilities, has more than doubled in enrollment over the past decade. That growth has turned it into a massive market, with hundreds of billions of federal dollars flowing through the system.
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Devoted operates as both an insurer and a care provider. Orinoco, Devoted's in-house AI platform, is used to manage member care, and investors increasingly view that approach as the future of the business. The company is competing with established insurers and a wave of venture-backed startups chasing the same older-adult market.
The company's rapid growth is part of a broader trend. As the population ages, tech-enabled insurers are competing aggressively for market position in Medicare Advantage. Devoted's focus on integrated care and AI-driven coordination gives it a distinct advantage in a market where traditional players are struggling to innovate.
The funding talks also show how fast the company is growing. Devoted's membership grew 121% year over year to 466,000 in January 2026. It began in 2017 with a model that many incumbents are only now trying to build: combining nationwide health coverage with AI-powered member care. That rapid growth and unusual market model help explain why the company is seeking a far larger valuation just months after its last round.
Investors see Devoted as making a long-term bet on technology plus Medicare. Its structure as a combined insurer and care provider lets it manage the member relationship from the point of the insurance plan through plus day of care. With Orinoco in the middle, the company can use its own data to coordinate and tailor care. That mix of health insurance and AI is a central reason it has been able to attract large checks so quickly.
A deal at $25 billion would signal confidence in healthcare AI and the industry's push to modernize Medicare Advantage. When investors move this much capital this fast, it suggests competition will only intensify.
For people who are approaching Medicare age, that competition can be helpful. More players competing for members often leads to richer benefits, lower premiums, and more effort on customer service.
The deal isn't completed yet, and valuations in private markets can still shift. But the fact that Devoted is raising again so soon after its last funding amount shows where investors expect healthcare to head. The companies that harness technology to make health feel more organized are the ones investors believe can win the next decades of Medicare.
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