Walgreens Boots Alliance is an investor in SeekMedicare, a subsidiary of Clover Well being that’s one amongst a dozen points associated to the Medicare Benefit insurer’s enterprise practices presently below federal investigation. Clover Well being went public final month by a particular goal acquisition firm led by former Fb govt and “SPAC king” Chamath Palihapitiya.
The ties between Nashville, Tennessee-based Clover and Jersey Metropolis, New Jersey-based SeekMedicare have been first detailed in a short-seller report launched final week by Hindenburg Analysis, which says it doesn’t have a place in Clover. That report alleged that SeekMedicare was deceptive clients, as a result of it claimed it was offering “unbiased” Medicare recommendation with out disclosing that its mother or father firm is a Medicare Benefit insurer. Walgreens has been encouraging its clients age 65 and older to make use of SeekMedicare to search out medical health insurance.
SeekMedicare was considered one of twelve Clover Well being subjects being reviewed by the Division of Justice, in response to a civil investigative demand despatched to a former worker. Clover stated it had been conscious of the DOJ inquiry previous to going public, however didn’t decide that truth to be “materials.” Following the Hindenburg report, the Securities and Change Fee opened a separate investigation into Clover Well being. A Clover Well being spokesperson stated that neither Clover nor SeekMedicare had been contacted by the DOJ or SEC particularly concerning SeekMedicare.
SeekMedicare’s relationship to Clover Well being, which is itself a Medicare Benefit Insurer, will not be disclosed on its web site.
A spokesperson for SeekMedicare confirmed Walgreens is an investor and that Jared Josleyn, a vice chairman of innovation at Walgreens, serves as a board observer. The worldwide pharmacy chain didn’t reply to a number of requests for remark. Josleyn previously led shopper well being technique and partnerships at Google Well being and Verily, Google’s life sciences division. Alphabet’s enterprise arm GV (previously often called Google Ventures) can also be an investor in Clover Well being.
A Medium publish from SeekMedicare president Brady Priest printed Friday moreover acknowledged a “strategic relationship” with Walgreens. This contains an in-person program in “virtually 100 Walgreens shops” as a part of constructing “a community-based program that intends to assist native seniors discover and perceive their Medicare protection choices, whereas additionally offering significant, long-term profession alternatives in every group that we enter.”
Priest, the previous common counsel at Clover Well being, says the idea for SeekMedicare “was developed inside Clover Well being by Andrew Toy, Clover’s President and CTO, and Chris Watson, who’s now SeekMedicare’s COO.” Whereas a number of former Clover staff now work at SeekMedicare, this relationship will not be disclosed on its web site, which led to battle of curiosity allegations within the Hindenburg report.
“Clover is a big believer in info liquidity for Medicare-eligibles, in addition to the idea of really impartial steerage and knowledgeable decision-making. That’s why we seeded SeekMedicare,” Clover president Andrew Toy wrote in a Medium publish.
On Friday, the SeekMedicare web site received a revamp (although it nonetheless doesn’t point out ties to Clover). The tagline “We don’t work for insurance coverage firms. We give you the results you want,” was eliminated. It was modified to: “We do the work. So that you get the most effective protection.”