Healthcare startup Devoted Health could be valued at $25 billion

August 21, 2026 - 20:47

Devoted Health, the healthcare startup co-founded by brothers Ed and Todd Park, is reportedly in the middle of a fundraising effort that could push its valuation to around 25 billion dollars. That number, if confirmed, would mark a huge jump from the 12.6 billion dollar valuation the company saw in its last major round back in 2021.

The company focuses on Medicare Advantage plans, which are private insurance policies that replace traditional Medicare. Devoted Health has been growing fast by targeting older adults with a mix of technology, personalized care teams, and a heavy emphasis on keeping members healthy at home. The Parks, who previously helped build other health tech ventures, have positioned the company as a direct competitor to established insurers like UnitedHealth and Humana.

This potential valuation comes at a time when Medicare Advantage is drawing intense investor interest. The program now covers more than half of all Medicare beneficiaries, and private insurers are fighting hard for market share. But the sector also faces regulatory headwinds, including upcoming changes to how the government pays insurers and stricter rules on prior authorization.

Still, investors seem willing to bet on Devoted Health's model. The company says it has seen strong membership growth and better-than-expected clinical outcomes. A new round at this size would make it one of the most valuable private health insurers in the country, just behind a few giant public players.

Neither Devoted Health nor its investors have commented publicly on the reported terms. The deal is not yet finalized, and details could still change. But if it goes through, it would be a clear signal that Wall Street still believes in the long-term potential of Medicare Advantage, even as the regulatory environment gets tougher.