Oscar Health, a company involved in healthcare insurance and technology development. It has insured approximately 400,000 members under its healthcare plans, and it expects to collectively generate roughly $2 billion in revenue by the end of 2020, according to slides of a presentation from the JP Morgan Healthcare Conference.
50% rise in Revenue and Membership
The figures are based on the period of open-enrollment that just closed. It would represent a 50% rise both in membership and revenue for Oscar health. The company is co-founded by Mario Schlosser and Joshua Kushner, who is the brother of senior Trump advisor Jared Kushner and the founder of VC firm Thrive Capital.
Earlier on Tuesday, Oscar declared that it was teaming up with Cigna to offer services to small business owners. Commercial health insurance is acting as a small but flourishing part of Oscar’s total membership and its one area where the company wishes to expand. Fundamentally, Oscar can introduce its healthcare services integrated with technology to small businesses following the big healthcare networks with which businesses are comfortable working.
Oscar has 375,000 individual members having its insurance plans, another 20,000 are expected to come through small-group insurance and the balance generated from Medicare Advantage customers, according to a person who knows the company’s business.
Massive growth in three years
Oscar was a small scale business just three years ago, with only 70,000 members after reducing its coverage and pulling out of markets in Dallas-Fort Worth and New Jersey. From a footprint that encompassed San Antonio, New York, Orange County, Los Angeles, and San Francisco. Now, Oscar expects to work in 29 markets by the end of 2020.
The expansion has been fueled by colossal capital infusions that the company has gotten over the past few years. Oscar raised $540 million in 2018 alone, from investors such as Founders Fund, Alphabet, Capital G (the later-stage investment firm of Alphabet) and Verily (Alphabet’s investment firm which aims at life sciences.) In total, Oscar Health has raised $1.3 billion to live its dream of providing improved healthcare services by using technologies such as a mobile app for telemedicine, booking appointments, physician consultations, prescription refills, and more comforting and caring healthcare experience for its members.
In the beginning, the company leveraged on the creation of new marketplaces by the Affordable Care Act, the act was for individuals to buy health insurance when it launched in 2012. However, the company is now looking to beacon its growth by including more deals with insurance providers like Cigna for small businesses.
In the end, the company’s vision is to provide a healthcare industry where employer defined plans are going to vanish as more consumers turn to Individual Coverage Health Reimbursement Arrangements. In that environment, Oscar’s potential services include the latest partnership with the startup Capsule Pharmacy to offer same-day delivery of prescribed medicines for Oscar’s members in New York. Moreover, the company’s strong relationship with providers like the Cleveland Clinic, have given it an upper hand over its competitors.
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