Oscar Health

Last updated

Oscar Health, Inc.
Oscar Health, Inc.
Company type Public
NYSE:  OSCR
Industry Health insurance
FoundedNovember 1, 2012;11 years ago (2012-11-01) in New York City
Founders
Headquarters One Hudson Square,
New York City
,
U.S.
Area served
New York, California, Texas, New Jersey, Ohio, Tennessee, Arizona, Florida, Michigan, Pennsylvania, Virginia, Georgia, Kansas, Colorado, and Missouri
Key people
 Mark Bertolini (CEO)
RevenueIncrease2.svg US$5.86 billion (2023)
Increase Negative.svgUS$−236 million (2023)
Increase Negative.svgUS$−271 million (2023)
Total assets Decrease2.svgUS$3.60 billion (2023)
Total equity Decrease2.svgUS$806 million (2023)
Members1.3 million (2024)
Number of employees
c. 2,400 (2023)
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]

Contents

History

2012–2015

According to the company, it was founded in 2012 by Mario Schlosser, Joshua Kushner, and Kevin Nazemi, who were classmates at Harvard Business School. [3] [5] Mother Jones reported in March 2020 that Joshua and his brother Jared owned the firm's parent company, Thrive Partners III, at the time of its incorporation 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]

2016

Oscar had 145,000 members in New York, New Jersey, California, and Texas in 2016. [8] The firm expanded its operations to Tempe, Arizona, in August that year, where it decided to locate its Concierge teams, their name for their member services model. [9] On August 23, 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, the firm 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]

2017

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]

2020–present

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]

Mario Schlosser steps down as CEO on April 3, 2023, transitioning to President of Technology. Mark Bertolini takes over as CEO.

Marketing and brand

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]

Finances

Funding

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]

Revenue

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]

Headquarters and offices

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]

Related Research Articles

<span class="mw-page-title-main">SoftBank Group</span> Japanese investment holding company

SoftBank Group Corp. is a Japanese multinational investment holding company headquartered in Minato, Tokyo, Japan 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.

<span class="mw-page-title-main">Jared Kushner</span> American businessman (born 1981)

Jared Corey Kushner is an American businessman, investor, and former government official. He is the son-in-law of former president Donald Trump through his marriage to Ivanka Trump, and served as a senior advisor to Trump from 2017 to 2021. He was also Director of the Office of American Innovation.

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 a private American venture capital firm based in Menlo Park, California. It was founded by entrepreneur Vinod Khosla in 2004. The firm 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, Instacart, and OpenAI.

Lightspeed Venture Partners is a global venture capital firm focusing on seed stage, early stage investments and growth stage investments in the enterprise, fintech, consumer and healthcare sectors. Lightspeed has eleven offices globally and as of 2023 had approximately US$25 billion in assets under management.

<span class="mw-page-title-main">GV (company)</span> Venture capital unit of Alphabet Inc.

GV Management Company, L.L.C. is a venture capital investment arm of Alphabet Inc., founded by Bill Maris, that provides seed, venture, and growth stage funding to technology companies. Founded as Google Ventures in 2010, the firm has operated independently of Google, Alphabet's search and advertising division, since 2015. GV invests in startup companies in a variety of fields ranging from the Internet, software, and hardware to life science, healthcare, artificial intelligence, transportation, cyber security and agriculture. It has helped finance more than 300 companies that include Uber, Nest, Slack, and Flatiron Health.

Greycroft LP 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 businessman, heir, and investor. He is the founder and managing partner of the venture capital firm Thrive Capital, co-founder and vice-chairman of Oscar Health, and the youngest son of real estate developer Charles Kushner. He is the younger brother of Jared Kushner, son-in-law and former senior advisor to former U.S. President Donald Trump. He is also 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. As of April 2023, Andreessen Horowitz ranks first on the list of venture capital firms by assets under management, with $42 billion as of May 2024.

<span class="mw-page-title-main">Zocdoc</span> Online medical care appointment booking service

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.

<span class="mw-page-title-main">SOSV</span> Venture capital firm

SOSV is a venture capital firm that provides pre-seed, seed, Series A and later stage funding to deep tech startups that join its startup development programs, which are located in New York City, Newark, New Jersey, and San Francisco. SOSV was founded in 1995 by Sean O'Sullivan. It is headquartered in Princeton, New Jersey, with additional offices in Cork, Pune, Shenzhen and Tokyo.

CapitalG Management Company LLC is the independent growth fund under Alphabet Inc. Founded in 2013, it focuses on larger, growth-stage technology companies, and invests for profit rather than strategically for Google. In addition to capital investment, CapitalG's approach includes giving portfolio companies access to Google's people, knowledge, and culture to support the companies' growth and offer them guidance.

<span class="mw-page-title-main">Magic Leap</span> American augmented reality hardware manufacturer

Magic Leap, Inc. is an American technology company that released a head-mounted augmented reality display, called Magic Leap One, which superimposes 3D computer-generated imagery over real world objects. It is attempting to construct a light-field chip using silicon photonics.

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.

<span class="mw-page-title-main">Cadre (company)</span> American financial technology company

RealCadre LLC, commonly Cadre, is an American financial technology company that provides individuals and institutions direct access to real estate investment properties, including commercial properties based in New York. The business and financial press describe it as a platform 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 7 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.

Hims & Hers Health, Inc. is an American telehealth company that provides prescription and over-the-counter medications, as well as personal care products, through an online platform. Founded in 2017, the company provides healthcare services for a variety of conditions, including hair loss, sexual health, skincare, mental health, and weight management. Hims & Hers operates with a direct-to-consumer model where users consult with licensed healthcare professionals and access treatments and products through its platform. The company has expanded its offerings to include health solutions for both men and women, along with mental health services.

GoHealth, Inc. is an American marketplace for Medicare plans including Medicare Advantage, MediGap and Medicare Part D, which are programs administered through private health insurance companies. It also operates an online health insurance marketplace offering individual health insurance and short-term health insurance.

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.

<span class="mw-page-title-main">Thrive Capital</span> American venture capital firm

Thrive Capital Management, LLC, commonly Thrive Capital, is an American venture capital firm based in New York City. It focuses on software 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.

References

  1. ↑ "Oscar Health, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 15, 2024.
  2. 1 2 3 4 5 6 "Obamacare Startup Oscar Health Hits A $1.5 Billion Valuation". Forbes.com. Retrieved April 14, 2017.
  3. 1 2 Khouri, Andrew (October 18, 2015). "Insurance start-up Oscar seeks to shake up healthcare through its app". Los Angeles Times. ISSN   0458-3035 . Retrieved April 14, 2017.
  4. ↑ "10 things to know about Oscar Health: A view of the company 6 years after its founding". www.beckershospitalreview.com. June 29, 2018. Retrieved July 15, 2020.
  5. 1 2 Mangan, Dan (December 11, 2014). "Prix Fixe Obamacare: Deductible-Only Plans Keep It Simple". CNBC.com. Retrieved January 18, 2017.
  6. ↑ Corn, David. "Jared Kushner once controlled a firm now running a coronavirus testing website". Mother Jones. Retrieved March 31, 2021.
  7. ↑ "Can three technologists, $40 million, and Obamacare change health insurance forever?". Washington Post. Retrieved September 10, 2017.
  8. 1 2 "How Health Insurance Startup Oscar Is Going to Get to 1 Million Members". Bloomberg.com. February 19, 2016. Retrieved September 10, 2017.
  9. ↑ "New York-based tech-driven health insurance startup hiring 150 in Tempe". www.bizjournals.com. Retrieved September 10, 2017.
  10. ↑ "Oscar will leave 2 markets as insurance startup finds similar challenges as national payers – MedCity News". medcitynews.com. August 24, 2016. Retrieved September 10, 2017.
  11. ↑ NewYorkTimes (August 30, 2016) AbelsonReed
  12. ↑ "Take a look inside the doctor's office of the future, created by a $2 billion startup that's shaking up healthcare". Business Insider. Retrieved September 10, 2017.
  13. ↑ "Oscar | Smart, simple health insurance". www.hioscar.com.
  14. ↑ Buhr, Sarah (April 25, 2017). "Oscar Health rolls out its small business product Oscar for Business". TechCrunch. Retrieved September 10, 2017.
  15. ↑ O'Brien, Sara Ashley (June 15, 2017). "Cleveland Clinic partners with startup Oscar to offer insurance in Ohio". CNNMoney. Retrieved February 1, 2021.
  16. ↑ Buhr, Sarah (June 21, 2017). "Oscar Health is headed back to New Jersey and branching out to Ohio and Tennessee". TechCrunch. Retrieved September 10, 2017.
  17. ↑ Merced, Michael J. De La (July 12, 2017). "Oscar Health to Join Humana in Small-Business Venture". The New York Times. ISSN   0362-4331 . Retrieved September 10, 2017.
  18. 1 2 Kirkpatrick, David D. (March 21, 2019). "The Kingdom and the Kushners: Jared Went to Riyadh. So Did His Brother". The New York Times. ISSN   0362-4331 . Retrieved March 31, 2021.
  19. ↑ Japsen, Bruce. "Cigna And Oscar To Launch Health Plans For Small Business". Forbes. Retrieved July 13, 2020.
  20. ↑ "Oscar Health to launch Medicare Advantage plans in New York, Houston in 2020". FierceHealthcare. Retrieved July 13, 2020.
  21. ↑ "Oscar is Disrupting Health Care in a Hurricane". WIRED. Retrieved September 10, 2017.
  22. ↑ "Alphabet-Backed Startup Insurer Oscar Health Raises $1.2 Billion in IPO". Insurance Journal. March 3, 2021.
  23. ↑ Minemyer, Paige (May 11, 2022). "Oscar Health to exit 2 markets as it focuses on profitability". Fierce Healthcare. Retrieved May 17, 2022.
  24. ↑ Daum, Meghan (February 7, 2016). "Returning to a Gentler Gotham". New York Times.
  25. ↑ "Healthcare Startup Launches First TV Ad in New York and New Jersey," AdWeek, January 5, 2015.
  26. ↑ "Brooklyn commuters encounter 'broken' health care system". Metro US. October 20, 2016.
  27. ↑ Inc (June 24, 2014) FennDonna-8
  28. ↑ Merced, Michael (April 20, 2015). "Oscar, a Health Insurance Start-Up, Valued at $1.5 Billion". New York Times.
  29. ↑ MacMillan, Douglas (September 16, 2015). "Google Backs Startup Oscar Health Insurance" . Wall Street Journal.
  30. ↑ Rena, Xu (October 29, 2015). "Can Selling Insurance to Patients Transform Health Care?". New Yorker.
  31. ↑ Bertoni, Steven. "Oscar Health Gets $400 Million And A $2.7 Billion Valuation from Fidelity". Forbes. Retrieved September 10, 2017.
  32. ↑ D'Onfro, Jillian (August 14, 2018). "Alphabet puts another $375 million into Josh Kushner's Oscar Health, just months after previous investment". CNBC. Retrieved July 13, 2020.
  33. ↑ Loeb, Steven (October 7, 2019). "Top startups disrupting the healthcare insurance industry". Vator. Retrieved October 28, 2019.
  34. ↑ "Oscar's health insurance platform nabs another $225 million". TechCrunch. June 26, 2020. Retrieved July 13, 2020.
  35. ↑ Shaer, Matthew (June 9, 2014). "Does Oscar Sound Cooler Than Aetna?". New York Magazine. Retrieved October 30, 2019.
  36. ↑ Kliff, Sarah (July 26, 2016). "A Google-backed health insurer wants to disrupt insurance by ... limiting patient choice?". Vox.
  37. ↑ Abelson, Reed (June 20, 2016). "Health Insurer Hoped to Disrupt the Industry, but Struggles in State Marketplaces". New York Times.
  38. ↑ Tracer, Zachary (February 28, 2017). "Losses Mount for Obamacare Startup Oscar as Repeal Looms" . Bloomberg News . Archived from the original on March 1, 2017.
  39. ↑ Tracer, Zachary (May 16, 2017). "Obamacare Insurer Oscar's New Strategy Helps to Narrow Loss". Bloomberg.
  40. ↑ "Oscar Health expects to generate $1 billion in revenue and sign up 250,000 members in 2018". TechCrunch. December 21, 2017. Retrieved July 13, 2020.
  41. ↑ "Oscar Health now has 400,000 members and expects to bring in $2 billion by the end of 2020". TechCrunch. January 14, 2020. Retrieved July 13, 2020.
  42. ↑ Health, Oscar (June 30, 2017). "Announcing Oscar's first engineering outpost: Los Angeles". Medium. Retrieved September 10, 2017.
  43. ↑ "Oscar Expands Operations in Tempe". azcommerce.com. Retrieved September 10, 2017.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.