Dental Coverage Is Stuck in 2017, Here Is Why

It’s Thursday and we’re diving into the dental insurance divide, the Metaverse in healthcare market, and how physicians interest in value-based care is risk averse.

Good morning, ! It’s Thursday and we’re diving into the dental insurance divide, the Metaverse in healthcare market, and how physicians interest in value-based care is risk averse.

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— The Healthcare 150 Team

DATA DIVE

The Dental Divide and the Investment White Space

Dental care is increasingly unaffordable and underinsured. 13% of U.S. adults skipped dental care in the past year due to cost, the highest unmet need across all health services. That number rises to 17% among working-age adults and 11% for seniors, two groups largely left behind by existing insurance structures.

Despite its role in preventative health, dental coverage still lags health insurance by 18 percentage points—only 73% of adults had dental coverage in 2023, versus 91% for medical. And while spending on dental insurance has risen 22% since 2017, plan comprehensiveness hasn’t kept pace. Nearly 1 in 4 dental patients remain uninsured, and public coverage (Medicare, Medicaid) plays only a minor role for adults.

Why it matters: This is more than a healthcare gap, it’s an investment gap. For PE-backed insurers, dental is ripe for disruption: flexible, low-premium products targeting gig workers, part-time employees, and retirees could fill a large unmet market. For policy-oriented investors, reforms expanding adult coverage through Medicare or Medicaid could catalyze entirely new demand channels. (Read or Listen to Full Report)

TREND OF THE WEEK

Risk Aversion Is the Bottleneck in Value-Based Care

The problem isn’t interest—it’s risk tolerance. Bain’s latest survey finds that while 80% of physicians are open to value-based care (VBC), enthusiasm plunges as risk increases. Half are fine with quality incentives, but that drops to just 13% at full capitation. It’s a classic mismatch: payers want savings, but providers only want upside. Unsurprisingly, two-sided risk models still account for under 20% of total payments. What would turn the tide? Physicians point to three things: better financial support, streamlined billing, and more staff for reporting. Until then, full-risk Value-Based Care may remain a well-intentioned PowerPoint slide. (More)

PRESENTED BY BUILD WEALTH

WSJ Bestselling Author Walker Deibel’s BuildEnergy Fund Leverages 4-Decade Track Record (Over 80% Subscribed!)

B​uildEnergy Fund I is officially open to accredited investors​! This $100 million cashflowing fund offers family office terms and 30%+ IRR to its investors. 

Why i​nvest? Walker Deibel, the serial entrepreneur, WSJ bestselling author, and founder of Build Wealth sees this fund as hitting all facets of his Growth Predictor Framework:

  • Experienced Operating Team – A 4-decade / 6-fund track record of strong returns, including IRRs averaging 50%

  • Attractive Returns – Prior fund is already cash flowing 15% cash-on-cash, and estimated 35% IRR only 18 months in.

  • Institutional-Level Terms – Direct access to a $5M family office buy-in structure, reflecting a 7% immediate paper gain on a minimum $50,000 investment.

  • Focused Sector Approach – A strategic, supply / demand imbalance play, acquiring $100 million roll-up of oil wells during a buyer’s market.

​If you’re an accredited investor, you can get access to the data room here:

For questions, reach out to Mike Brown, Head of Investor Relations: mike@buildwealth.com

MARKET MOVERS

Company (Ticker)

Last Price

5D

Eli Lilly and Company (LLY)

$ 821.46

-6.36%

Johnson & Johnson (JNJ)

$ 1555.00

-0.23%

Novo Nordisk A/S (NVO)

$ 69.12

6.02%

Roche Holding AG (ROG. SW)

$ 331.30

3.09%

AbbVie Inc. (ABBV)

$ 196.07

1.94%

HEALTHTECH CORNER

The Metaverse in Healthcare Is Quietly Building a $125B Reality

It may have dropped off the hype cycle, but the metaverse in healthcare is quietly scaling toward a projected $125.6 billion market by 2034. From just $9.3B in 2023, that’s a more than 13x increase over the next decade, signaling that virtual care environments, immersive training, and digital twin technologies are gaining traction where it counts, in budget line items.

While much of the early buzz centered on speculative use cases, the reality is far more practical: surgical simulations, remote diagnostics, and behavioral therapy environments are among the real-world applications driving steady investment. Expect hospital systems, medical schools, and global health networks to pilot more immersive, interoperable platforms as workforce shortages and training backlogs persist.

Bottom line: The metaverse isn’t dead, it’s just putting on scrubs. (More)

TOGETHER WITH REPUBLIC

Private Markets Aren’t Just for the 1% Anymore.

Institutions invest billions into private markets because they may provide superior market positions and steady cash flow, even in a shaky market–now you can too.

For the first time ever, elite private assets are available to all investors for as little as $500 with Hamilton Lane Private Infrastructure Fund.

*Source: Hamilton Lane data, Bloomberg as of January 2024. Past performance is not a guarantee of future returns.
All securities come with specific risks not limited to a total loss of your investment. Past performance is not indicative of future results. Please review the risks specific to this investment on the HLPIF deal page hosted on Republic.com/hlpif

DEAL OF THE WEEK

Sanofi’s $11B OTC Exit Sets Stage for Targeted M&A Surge

Sanofi just inked a €10 billion ($11.4B) deal to sell a 50% controlling stake in its consumer health unit Opella to private equity firm Clayton, Dubilier & Rice, one of the largest European pharma carve-outs in recent memory.

Why now? Sanofi is sharpening its focus as a “pure-play biopharma, joining a long line of drugmakers slimming down to double down on prescription innovation. With the cash infusion, the French giant plans to pursue bolt-on acquisitions, bolster its dividend, and expand its share buyback program. Recent deals, like its $600M upfront investment in Dren Bio’s bispecific antibody, hint at the M&A playbook going forward: clinical-stage, high-potential, and tightly aligned with R&D goals.

For investors, this isn’t just about portfolio cleanup, it’s a signal. Expect Sanofi to move fast on smaller, strategic assets while keeping its sights off mega-mergers. In a market that rewards focus and firepower, Sanofi just boosted both. (More)

REGIONAL FOCUS

North America Stays the Apex Predator in Healthcare Tech

Private equity and VC dropped a record $15.6B into healthcare tech in 2024—and the U.S. and Canada took the lion’s share, commanding $10.5B across 397 deals. Europe played the loyal sidekick with $3.6B and 154 deals, while Asia-Pacific pulled in a respectable $1.14B on 136 deals. The Middle East edged ahead of Latin America and Africa in dollar terms, but with 17 deals for $200.5M, it still trails far behind on volume. Africa? Just 2 deals, totaling $2.7M—roughly what a mid-tier GP spends on conference sponsorships. In short: if you're raising for healthcare tech, start with a U.S. ZIP code and a CRM full of LPs. (More)

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