US health insurtechs had a strong first half of 2019 — but the Medicare Advantage market could present future hurdles

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The older age of and higher costs associated with Medicare Advantage enrollees could put a damper on hot health insurance startups' revenue:

with Berkshire Hathaway in preparation for the increased number of people it plans to cover in the near future — a deal Oscar likely hopes will help offset some of the potential pitfalls that come with entering a new market.Each insurtech is either currently operating in or planning to enter the MA space, which presents greater risk than the individual market as it predominantly serves seniors — making it more challenging as they face off against big-name payers boasting massive market shares.

The older age of and higher costs associated with MA enrollees could put a damper on insurance startups' revenue. Many young insurance startups found their stride with tech-savvy millennials: For example, Oscar supplementedcoverage networks with more digital tools and lower-cost primary care visits that make sense for young people who stand to save on routine preventative care.

Other insurtechs like Devoted that have only ever sold MA plans may know the demographics better, but the risk remains the same. MA members are age 65 or older, and they tend to have greater clinical and social health

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