Oscar Health, Inc. | |
Type | Public |
NYSE: OSCR | |
Industry | Health insurance |
Founded | November 1, 2012 in New York City |
Founders |
|
Area served | New York, California, Texas, New Jersey, Ohio, Tennessee, Arizona, Florida, Michigan, Pennsylvania, Virginia, Georgia, Kansas, Colorado, and Missouri |
Key people | Mario Schlosser (CEO) |
Revenue | US$2.71 billion (2021) |
US$−544 million (2021) | |
US$−571 million (2021) | |
Total assets | US$3.32 billion (2021) |
Total equity | US$1.39 billion (2021) |
Members | 1.1 million (2022) |
Number of employees | 2,621 (2021) |
Website | hioscar.com |
Footnotes /references [1] |
Oscar Health, Inc. is an American health insurance company, founded in 2012 by Joshua Kushner, Kevin Nazemi and Mario Schlosser, and is headquartered in New York City. [2] [3] The company focuses on the health insurance industry through telemedicine, healthcare focused technological interfaces, and transparent claims pricing systems which would make it easier for patients to navigate. [4]
According to the company, it was founded in 2012 by Mario Schlosser, Josh Kushner, and Kevin Nazemi, who were classmates at Harvard Business School. [3] [5] Mother Jones reported in March 2020 that Jared Kushner and Joshua Kushner owned Oscar's parent company, Thrive Partners III, when the business was incorporated in 2013. [6] Oscar began selling insurance for 2013, [7] the same year that the Affordable Care Act exchanges and individual mandate went into effect for the 2014 plan year. In its first year, Oscar secured 16,000 members. In 2015, Oscar expanded coverage to New Jersey and grew to about 40,000 members. [8]
In 2016, Oscar had 145,000 members in New York, New Jersey, California, and Texas. [8] Oscar expanded its operations to Tempe, Arizona, in August 2016, where it decided to locate its Concierge teams, their name for their member services model. [9] On August 23, 2016, Oscar announced it would be exiting the New Jersey Marketplace at the end of 2016, citing uncertainties in the market that would make it challenging "to operate effectively and continue to deliver access to quality healthcare." [10] Oscar also announced that it would halve the size of its provider network in New York amidst rising premiums in order to "gain more control over pricing and patient experience". [11]
In November 2016, Oscar opened the Oscar Center in partnership with Mount Sinai Health System. Located in Brooklyn Heights, next to the Jay Street–MetroTech station, the Oscar Center had a primary care practice only available to Oscar policyholders, with a doctor, nurse practitioner, and a behavioral health specialist. It also hosted free classes for members, such as yoga classes or classes for expectant mothers. [12] On March 13, 2020, Oscar closed the Oscar Center "until further notice." [13]
On April 25, 2017, Oscar announced its entrance into the small group insurance market, offering health plans in New York. [14] On June 15, 2017, Oscar announced its partnership with Cleveland Clinic to offer individual health insurance plans to consumers in five counties in Northeastern Ohio. [15]
On June 21, 2017, Oscar announced its intention to expand to additional markets in 2018 in areas of Tennessee, Ohio, Texas, New Jersey and California. [16] On July 12, 2017, Oscar announced that it would be selling small group insurance in the Nashville metro area to companies with up to 50 employees through a strategic partnership with Humana. [17]
A report by the New York Times in October 2017 speculated that Oscar Health had ties to Saudi Arabia. That month, Jared and Joshua Kushner visited Saudi Arabia's Crown Prince Mohammed bin Salman within days of each other. Despite Jared severing ties with Thrive Partners when he began working for the Trump administration, these coordinated visits raised questions about his ability to be impartial on Saudi affairs. Five months after Joshua's visit to Saudi Arabia in October 2017, Oscar Health announced a $165 million round of financing. [18]
While a spokesman for Kushner said that Oscar Health's management didn't know of direct investment by the Saudis, he declined to disclose if Saudis had invested in Thrive funds. He only confirmed that Thrive hadn't received money from any Saudi parties since the presidential election. In May 2018, Jared Kushner disclosed $8.2 million in capital gains from Thrive funds. [18]
In January 2020, Oscar announced a partnership with Cigna to bring health insurance plans to small businesses. The partnership, Cigna + Oscar, will "launch in select markets in 2020 and plan to expand the partnership over time." [19]
As of June 2020, Oscar had sold individual health insurance plans, both directly and through health insurance marketplaces, in New York, Texas and California. Oscar sells Medicare Advantage plans in New York City and Houston, Texas. [20] Mario Schlosser is the company's CEO, after serving as Co-CEO with Nazemi until the latter's departure in early 2015. While Kushner does not hold a formal role in Oscar's daily operations, he remains a major shareholder and Schlosser confirmed (as of 2017) that he has "significant input in multiple aspects of the company like strategy, hiring, and marketing." [21]
Oscar Health raised $1.2 billion on March 3, 2021, after an IPO. [22]
Oscar Health reported 1.1 million members across its platform, which equates to 1 in 13 ACA exchange-based enrollees. The company announced it would exit the Arkansas and Colorado markets for plan year 2023. [23]
Oscar Health has run marketing campaigns on the New York City Subway. [24] Bloomberg News reported the advertising campaigns feature cartoons suggesting "an easier way of getting medical care." AdWeek described Oscar Health's print ads as featuring "whimsical, animated characters".
In 2015, AdWeek reported that Oscar was airing its first television campaign targeted at the demographics of "new parents who are too frazzled to shop for health insurance." [25] The ad launched on network stations in New Jersey and New York areas, cable, movie theaters located in New Jersey and in advertising within the Spotify app.
In 2016, Oscar ran a subway ad campaign with an educational bent around what the problems are with the American healthcare system. [26]
Oscar has raised capital through a series of funding rounds. Its investors include Thrive Capital, General Catalyst Partners, Khosla Ventures, CapitalG, and Fidelity Investments. [2] [5] [27]
During the May 2014 Series A round, Peter Thiel's Founders Fund led the series investing $30 million. By the close of Series A, Forbes reported the valuation of the company at $800 million. [2]
During the 2015 Series B round, Oscar Health raised $145 million, bringing the total capital raised to $300 million, thus valuing the company at $1.5 billion. [2] [28] Series B investors included Formation 8, Horizons Ventures, Wellington Management Company, and Goldman Sachs. [2]
In September 2015, Oscar announced a funding round with Google Ventures and Google Capital, valuing the company at $1.75 billion. [29] [30]
During the 2016 Series C round, Oscar raised $400 million led by Fidelity Investments, with secondary participation from previous investors, with a reported valuation of $2.7 billion. [31] In 2018, Alphabet invested $375 million in Oscar Health. [32] As of 2019, the company had raised $1.3 billion, and was valued at $3.2 billion. [33]
In June 2020, Oscar raised $225 million in funding, in which the funding round saw participation from previous investors and also new investors, namely Baillie Gifford and Coatue. [34]
In 2014, New York magazine reported that as of May 2014, Oscar Health had 16,000 subscribers enrolled in its insurance program producing an estimated $72 million. [35] In 2015, Forbes reported that Oscar Health had 40,000 subscribers with an average subscriber paying annual fees of $4,500, placing Oscar Health's revenue estimates at $180 million. [2]
Vox reported that in 2015, Oscar Health lost $92.4 million in New York as the firm's analytical models failed to accurately forecast "the people who signed up for coverage were sicker than the company had expected." [36]
By 2016, Oscar Health had 135,000 subscribers, with roughly half residing in New York State. [37]
In February 2017, Bloomberg reported that Oscar had lost $204.9 million in 2016. [38]
In May 2017, Bloomberg reported that Oscar's first quarter loss had narrowed by nearly half, writing that the company was "beginning to get a handle on its medical costs." [39] In August 2017, Bloomberg also reported that Oscar had posted a $57.6 million loss in the first half of 2017, down from the $83 million lost posted the year prior.
In December 2017, TechCrunch reported that Oscar would expect to generate $1 billion in revenue and enroll 250,000 in 2018. [40]
In January 2020, TechCrunch reported that Oscar served 400,000 members and expected to bring in $2 billion by the end of the year. [41]
Oscar's headquarters are located in Tribeca, New York City. They also have a technology outpost in Los Angeles [42] and a member services operation in Tempe, Arizona. [43]
SoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Minato, Tokyo which focuses on investment management. The Group primarily invests in companies operating in technology that offer goods and services to customers in a multitude of markets and industries ranging from the internet to automation. With over $100 billion in capital at its onset, SoftBank’s Vision Fund is the world's largest technology-focused venture capital fund. Fund investors included sovereign wealth funds from countries in the Middle East.
Jared Corey Kushner is an American businessman and investor. He served as a senior advisor to 45th U.S. president Donald Trump, his father-in-law. Since leaving the White House, Kushner founded Affinity Partners, a private equity firm investing in Israeli and American companies exapnding in the Middle East, Africa, India and other parts of Asia. With funds derived from the Saudi government's sovereign wealth fund, among other sources, he describes it as an "investment corridor between Saudi Arabia and Israel", seen internationally as a "sign of warming ties between two historic rivals".
Kushner Companies LLC is an American real estate developer in the New York City metropolitan area. The company's biggest presence is in the New Jersey residential market.
Khosla Ventures is an American venture capital firm founded by Vinod Khosla, focused on early-stage companies in the Internet, computing, mobile, financial services, agriculture, healthcare and clean technology sectors. Some of its most successful investments include Affirm, DoorDash, Square, Impossible Foods and Instacart.
Greycroft is an American venture capital firm. It manages over $2 billion in capital with investments in companies such as Bird, Bumble, HuffPost, Goop, Scopely, The RealReal, and Venmo. Greycroft was founded in 2006 by Alan Patricof, Dana Settle, and Ian Sigalow. The firm is headquartered in New York City and Los Angeles.
Joshua Kushner is an American billionaire businessman, heir, and investor. He is the founder and managing partner of the venture capital firm Thrive Capital, co-founder of Oscar Health, and the son of billionaire real estate developer Charles Kushner. His brother is Jared Kushner, the son-in-law and former senior advisor to former U.S. President Donald Trump. He is a minority owner of the Memphis Grizzlies.
Andreessen Horowitz is a private American venture capital firm, founded in 2009 by Marc Andreessen and Ben Horowitz. The company is headquartered in Menlo Park, California.
Zocdoc is a New York City-based company offering an online service that allows people to find and book in-person or telemedicine appointments for medical or dental care. The platform also functions as a physician and dentist rating and comparison database. The service is free for patients, and doctors pay to advertise their appointment slots. Established in 2007, the private company had a $1.8 billion valuation by August 2015, the third-highest for a startup in New York at the time.
Getaround is an online car sharing or peer-to-peer carsharing service that connects drivers who need to reserve cars with car owners who share their cars in exchange for payment.
SOSV is a venture capital firm that provides pre-seed, seed, venture and growth stage funding to startups in the technology sector. The company conducts seed accelerator programs in Asia and the United States of America.
SoFi Technologies, Inc. is an American online personal finance company and online bank. Based in San Francisco, SoFi provides financial products including student and auto loan refinancing, mortgages, personal loans, credit card, investing, and banking through both mobile app and desktop interfaces.
TriNet Zenefits is a technology company based in San Francisco, that offers cloud-based software as a service to companies for managing their human resources, with a particular focus on helping them with payroll and health insurance coverage. The company was founded in 2013.
Lemonade, Inc. offers renters' insurance, homeowners' insurance, car insurance, pet insurance and term life insurance in the United States as well as contents and liability policies in Germany and the Netherlands and renters insurance in France. The company is based in New York City. It has approximately 1 million customers and 70% of its customers are under the age of 35. The company is registered as a public benefit corporation and has a stated mission of ‘transforming insurance from a necessary evil into a social good." Its business plan includes annually giving a portion of its underwriting profits to a nonprofit organization chosen by each customer upon signup. Lemonade uses artificial intelligence and chatbots to process claims.
The Public Investment Fund is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of US$620 billion (£514 billion). It was created in 1971 for the purpose of investing funds on behalf of the Government of Saudi Arabia. The wealth fund has been controlled by Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler since 2015.
Cadre is a New York–based financial technology company that provides individuals and institutions direct access to large commercial properties. The business and financial press describe it as a service that "makes the real estate market more like the stock market" by allowing investors to select the individual transactions in which they participate, while investing a smaller amount than would be required to fully fund a transaction. For example, 12 institutional investors participated in a $60 million office building purchase. The firm was named to Forbes' "FinTech50" for 4 years in a row starting in 2016. In 2019, Cadre was the cover story of the Forbes "FinTech 50" issue. In 2018, a partnership with Goldman Sachs was announced through which Goldman Sachs' private wealth clients committed at least $250 million (USD) real estate investments through Cadre. In 2020, Cadre announced its "Direct Access" fund intended to include smaller investors with a $400 million target raise. The company also offers a managed portfolio service and a real estate secondary market, as well as a cash holdings account called "Cadre Cash". The company has announced plans to address racial injustice in the United States by investing at least 10% of its Direct Access fund investments with minority-owned operators and increasing its cash held in black-owned banks.
The SoftBank Vision Fund is a venture capital fund founded in 2017 that is part of the SoftBank Group. With over $100 billion in capital, it is the world's largest technology-focused investment fund. In 2019, SoftBank Vision Fund 2 was founded. The total fair value of both funds as of 31 March 2021 was $154 billion. By 2023, the dismal performance of the fund had cast a shadow over the initial exuberance of both the fund and Masayoshi Son, the founder and largest shareholder of the SoftBank Group.
Clover Health Investments, Corp is an American health care company founded in 2014. The company provides Medicare Advantage (MA) insurance plans and operates as a direct contracting entity with the U.S. government. The company manages care for Medicare beneficiaries in 11 states and started trading publicly on January 8, 2021.
Affinity Partners is a global investment firm, based in Miami, formed in summer 2021 by Jared Kushner, a senior advisor to Donald Trump during his US presidency.
Thrive Capital is an American venture capital firm based in New York City. It focuses on media and internet investments. The firm was founded by Joshua Kushner who is also co-founder of Oscar Health and minority owner of the Memphis Grizzlies.