OSCAR Financials & Business Planning
Oscar has announced plans to expand to 14 markets across nine states in 2019, pending regulatory approval. This decision reflects the continued strength of their business model and confidence in our ability to effectively scale with our consumer-focused, technology-driven approach in the individual market.
Pending regulatory approval, their new 2019 markets will include new states (Michigan, Florida, and Arizona) and new metro areas within existing states (Ohio, Texas, and Tennessee).
You can learn more in their blog post, by checking out the recent press coverage, or by reading our highlights below:
Recent press coverage:
- CNBC: Oscar Health doubles down on Obamacare exchanges for 2019
- Reuters: Oscar to expand individual health insurance to more states
- All new plans will include Oscar’s core benefits, such as 24/7 telemedicine, a dedicated Concierge Team, and access to an integrated network of excellent hospital systems. We will share more details about these new plans, including our in-network provider partners, and our specific geographic service areas once they are approved.
- This marks the second year in a row that Oscar has expanded its footprint significantly, which reflects the continued strength of our business model. After growing our membership in 2018 by 250% to 240,000 enrollments, we’re confident that we’ve built a successful, replicable playbook that attracts members and builds market share for our provider partners in selective networks.
Oscar has raised $165 million to deepen the investment in their technology platform and accelerate expansion. It’s a strong vote of confidence that we’re on to something great, and we’re eager to bring Oscar to new markets and more members.
Oscar Blog Post: Our Next Phase of Growth
CNBC: Oscar Health raises $165 million from Alphabet and others
Forbes: Oscar Health Raises $165M For Multi-City Obamacare Expansion
- Our funding round was led by Brian Singerman and Founders Fund, who have been a major supporter of our efforts since day one, as well as returning industry leaders including Google, Fidelity, and General Catalyst.
- This is a significant vote of confidence in our roadmap — investors can see that we have a playbook for securing good unit costs, engaging members, and driving market share with health system partners that we can replicate across the country, at 4-5 cities every year.
- This capital will allow Oscar to continue investing in the infrastructure, technology, and people that are critical to realizing our vision of lowering health care costs, delivering better care, and increasing member happiness.
Market Share increase via Narrow Networks.
Oscar began shifting its strategy toward relying on narrow networks in 2016, when it announced that it would cut its New York provider network in half in 2017, removing some major health systems in the state to get a handle on its costs and improve the efficiency of its operations. About two-thirds of members opted to stay with Oscar after it narrowed its network.
The altered strategy has helped financially. Its historically high administrative costs have come down by a double-digit percentage, Oscar CEO Mario Schlosser told Modern Healthcare in a recent interview. Its medical loss ratio, which represents the percentage of premiums spent on medical care and quality improvement activities, has far exceeded that of veteran insurance companies, at 95% in 2017, but it’s come down from over 120% in 2016. Modern Health Care 2.6.2018
Oscar has recently partnered with multinational insurer AXA! It’s a great indicator of Oscar’s solid financials, and we’re excited to continue to grow.
You can learn more by reading about it here, or by following along in the notes below:
Why did Oscar pursue a quota share deal with AXA?
- All health insurers are required to hold a certain percentage of its premiums as “reserves” so that regulators can ensure that carriers have enough money to pay their future claims.
- With the AXA deal, Oscar will cede 50% of it’s premiums/claims to AXA, which will free up 50% of its capital requirements
- We expect that the deal will free up nearly $100 million in capital over the next few years, providing capital relief as we continue to grow
I’m also thrilled to report that we’ve enrolled over 250k members across six states, and expect to generate $1 billion in revenue in 2018. Learn more below:
- Oscar Health expects to generate $1 billion in revenue and sign up 250,000 members in 2018 (TechCrunch)
- Oscar Health CEO: We are shaking up the health care system. Here’s how (CNBC Squawk Box)
Be sure to use this link though to enroll
Direct Affiliate ONLINE Enrollment Link with Oscar