CVS Health is one company backing Medicaid startup Waymark through its participation in a $42 million financing round.
Existing investor Lux Capital led the round, with CVS Health Ventures joining as a new investor. The investment consists of $22 million in equity capital and a $20 million line of credit, bringing Waymark's total capital raised to date to $87 million, according to an Oct. 18 news release.
Waymark enters into risk-based contracts with Medicaid managed care organizations to deliver community-based care and transition primary care practices to value-based arrangements. Currently, the company is supporting 50,000 Medicaid enrollees in Washington state and Virginia.
"This new financing will allow us to continue hiring and training a new community health workforce, expand PCP capacity, and ultimately deliver on our charter to improve access and quality of care for people receiving Medicaid," Rajaie Batniji, MD, PhD, co-founder and CEO of Waymark, said.
According to a February 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.