Oscar Health now has 400,000 members and expects to bring in $2 billion by the end of 2020
Oscar Health, the upstart healthcare insurance company and technology developer, expects to have roughly 400,000 members insured under its healthcare plans, who collectively will bring in roughly $2 billion in revenue for the company by the end of 2020, according to slides of a presentation from the JP Morgan Healthcare conference seen by TechCrunch.
Those figures, based on the open-enrollment period that just closed, would represent 50% growth both in membership and revenue for the healthcare provider co-founded by Mario Schlosser and Joshua Kushner, founder of VC firm Thrive Capital and the brother of senior Trump advisor Jared Kushner.
Earlier today, Oscar announced that it was partnering with Cigna to provide services to small business owners. Commercial health insurance is a small but growing proportion of Oscar’s total membership, and it’s one area where the company hopes to expand. Essentially, Oscar can bring its technology-enabled healthcare services to small businesses in concert with the large healthcare networks with which businesses are used to working.
To date, Oscar counts around 375,000 individual members on its insurance plans, with another 20,000 coming through small-group insurance and the balance derived from Medicare Advantage customers, according to a person familiar with the company’s business.
Only three years ago, Oscar was a much smaller business, with only 70,000 members after retrenching its coverage and pulling out of markets in Dallas-Fort Worth and New Jersey. From a footprint that encompassed New York, San Antonio, Los Angeles, Orange County and San Francisco, Oscar now expects to operate in 29 markets by the end of 2020.
Fueling that expansion is prodigious capital infusions the company has received over the past few years. In 2018 alone, Oscar raised $540 million from investors including Alphabet, Founders Fund, Capital G (Alphabet’s later-stage investment firm) and Verily, Alphabet’s investment firm focused on life sciences. In all, Oscar Health has raised $1.3 billion to fulfill its vision of providing better healthcare services through technologies like a mobile app for telemedicine, physician consultations, booking appointments, prescription refills and a more concierge-like healthcare experience for its members.
Initially, the company took advantage of the Affordable Care Act’s creation of new marketplaces for individuals to buy health insurance when it launched in 2012, but is now looking to buoy its growth by adding more deals with insurance providers like Cigna for small businesses.
Ultimately, the company envisions a healthcare industry where employer-defined plans will disappear as more consumers turn to Individual Coverage Health Reimbursement Arrangements. In that environment, Oscar’s bespoke services -like the recent partnership with the startup Capsule Pharmacy to provide same-day prescription delivery for Oscar’s members in New York- or the company’s tight relationship with providers like the Cleveland Clinic, become competitive advantages.
Source: techcrunch.com
Startup insurer Oscar Health to to sell Obamacare plans in six new US states
American health insurance Oscar Health will roll out its biggest expansion of health insurance yet, expanding to 12 new markets and six new states to sell coverage for individuals and families in 2020.
The move, which is subject to regulatory approval, will expand the company’s total geographic footprint to 15 states and 26 markets.
It marks the third succeeding year of Oscar’s business expansion.
Oscar currently sells individual Obamacare coverage in 14 markets in 9 states: New York, New Jersey, California, Tennessee, Ohio, Texas, Florida, Michigan and Arizona. Oscar now has 260,000 health plan enrollees across the country.
On Thursday, Oscar said it will expand in Florida to Miami, Tampa, Ocala and Daytona.
Additionally, the New York-based health insurer will expand to Philadelphia, Pennsylvania in Denver, Colorado; and Richmond markets in Virginia.
Furthermore, the insurer will enter Atlanta, Georgia; and the Kansas City metropolitan area across Missouri and Kansas.
Oscar will expand in Houston in Texas besides foraying into a number of counties in Western Michigan.
Oscar CEO and co-founder Mario Schlosser said: “Oscar’s expansion proves that our commitment to making health care easy — by developing seamless technology and providing personalised support — is working.
“I have never been prouder of the work Oscar is doing to positively impact our members’ lives. We look forward to serving our new and current members in 2020.”
Concurrently, Oscar will also roll out Medicare Advantage plans in New York in collaboration with Montefiore Health System. The plan was first revealed in July this year.
Oscar Health, which raised $165m from Alphabet in March 2018 at a valuation of $3.2bn, will also launch the plan in Houston, Texas.