What’s So Special About Clover Health?

Stock Market
  • As America’s aging population grows, so will the need for affordable access to healthcare
  • Clover Health poses a welcome threat to outdated healthcare delivery models by introducing data and technology tools
  • Investors can consider Clover Health as an affordable bet against traditional forms of healthcare

In the U.S., there’s a population of patients that’s expanding rapidly from a niche market to a vast addressable opportunity.

In 2021, more than 60 million people were enrolled in Medicare, which includes many of America’s seniors. That number is expected to increase over the coming years to represent $1 trillion in total expenditures by the year 2025.

Within Medicare, the Medicare Advantage market comprised $270 billion of annual spend in 2020, and is anticipated to expand to roughly $590 billion by 2025. A persistent problem, however, involves getting the best possible care to these patients, and doing so affordably.

Another issue concerns whether medical practitioners are getting the data they need to best serve these underserved patients. Clover Health (NASDAQ:CLOV) strives to address these problems, so many people are interested to learn more about this company.

CLOV Clover Health $3.43

Is Clover Health a Real Company?

Yes indeed, Clover Health is a real company with real operations. You can find Clover Health’s principal executive offices in Tennessee, in a town called Franklin.

To put it simply, Clover Health is a Medicare Advantage insurer that’s on a mission to improve every life. The company works with medical professionals and leverages the power of technology to make healthcare more accessible.

Clover Health’s target market is primarily underserved patients, including America’s seniors. For one thing, the company makes it easy for qualified individuals to get affordable healthcare. On the company’s website, it states that the 2022 plans start at $0 per month.

As of Jan. 1, 2022, Clover Health operated Medicare Advantage plans in nine U.S. states and 209 counties. Traditional healthcare insurers might feel threatened by what they’re doing, but the company doesn’t seem afraid to be a disruptor.

Clover Health is also differentiated by its Clover Assistant platform, which uses data analytics to equip physicians with data, potentially leading to improved clinical decision-making and outcomes.

According to the company, the Clover Assistant “aggregates and structures millions of data points per day.” Also, it uses “real-time, data-rich insights” to “inform providers’ decision-making at the moment that they are interacting with and treating their patients.”

Who Owns CLOV Stock?

Clover Health is owned by the shareholders, in a manner of speaking, but there is no provable parent company of Clover Health.

What we can say with confidence is that Clover Health has a fascinating history. The company was started in 2014 by Vivek Garipalli and Kris Gale.

A major milestone occurred when Clover Health went public in 2020 via a reverse merger with Social Capital Hedosophia Holdings Corp. III, a shell company.

Social Capital Hedosophia Holdings Corp. III was led by Chamath Palihapitiya, a famous billionaire was has overseen multiple reverse merger transactions. So, the stock market debut of CLOV stock was highly publicized and greatly anticipated.

Interestingly, Chelsea Clinton has served as a director with Clover Health since 2017. Moreover, she reportedly purchased 100,000 shares of the company’s stock.

Today, Clover Health is worth more than $1 billion. This puts the company into the “unicorn” category among start-up ventures. Plus, Clover Health’s funding has reached a very healthy $425 million.

So, What’s Special about CLOV Stock?

Clearly, CLOV stock isn’t your average Medicare Advantage insurer. The company might upend the traditional insurance industry as we know it, but that’s not necessarily a bad thing.

Clover Health is different because it makes insurance more affordable for underserved patient populations. In addition, the Clover Assistant provides essential data to benefit both medical practitioners and their patients.

So, Clover Health is definitely real and it looks like the company is here to stay. The result, it seems, is a win-win scenario for the company and for the American healthcare system.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content -and crossed the occasional line -on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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