Oscar Health: Private Insurance, Personalized Care

Oscar Health, Inc. is a private health insurance company founded in 2012 by Mario Schlosser, Joshua Kushner, and Kevin Nazemi. The company is headquartered in New York City and offers health insurance plans in various states across the US. Oscar Health aims to simplify health coverage and make the healthcare system more accessible and affordable for its members. The company utilizes technology, such as telemedicine and healthcare-focused technological interfaces, to provide convenient and personalized care. Oscar Health has raised significant funding, expanded its market presence, and focuses on improving the consumer health insurance experience.

Oscar Health's history and founding

Oscar Health, Inc. is a private health insurance company founded in 2012 by Joshua Kushner, Kevin Nazemi, and Mario Schlosser, who were classmates at Harvard Business School. The company is headquartered in New York City and focuses on the health insurance industry through telemedicine, healthcare-focused technological interfaces, and transparent claims pricing systems. The idea for Oscar originated from Schlosser's complicated experience finding care and the right physician during his wife's first pregnancy. He wanted to create a company that focused on the consumer and made it easier for them to navigate the healthcare system.

In its first year of operation, Oscar secured 16,000 members. The company began by offering individual plans in New York in 2014, including 24/7 access to virtual care services. In 2015, Oscar expanded its coverage to New Jersey and grew to about 40,000 members. The following year, Oscar had 145,000 members across New York, New Jersey, California, and Texas. The company also expanded its operations to Tempe, Arizona, where it located its Concierge teams, their name for their member services model.

In 2016, Oscar began assigning dedicated Care Teams to each member and opened the Tempe Health Hub to support these teams. The company also opened the Oscar Center in partnership with Mount Sinai Health System in Brooklyn Heights. The Oscar Center offered primary care, yoga classes, and classes for expectant mothers exclusively to Oscar policyholders.

In 2017, Oscar announced its entrance into the small group insurance market, offering health plans in New York and Northeastern Ohio through a partnership with Cleveland Clinic. The company also expanded to additional markets in Tennessee, Ohio, Texas, New Jersey, and California. By 2017, Oscar had expanded its presence from its original market in New York to nine states and 14 markets.

In 2020, Oscar launched Medicare Advantage as its third business line. The following year, the company celebrated its Initial Public Offering on the NYSE and brought +Oscar to market. In 2022, Oscar surpassed the 1 million member milestone and now serves approximately 1.6 million members across the US.

Oscar's expansion across the US

Oscar is a private health insurance company that was founded in 2012. It is a leading healthcare technology company with a mission to make a healthier life accessible and affordable for all.

In 2022, Oscar Health, Inc. announced its expansion plans for the upcoming year. During the Open Enrollment period, the company planned to offer health insurance to individuals and families in three new states and 146 new counties. With this expansion, Oscar would be offering its services in a total of 22 states and 607 counties across its Individual & Family, Medicare Advantage, and Small Group plans. This marked the fifth consecutive year of Oscar's expansion, with the company offering Individual and Family Plans for the first time in Arkansas, Illinois, and Nebraska, while also expanding its existing state footprints in Colorado, Florida, Georgia, Iowa, Missouri, Oklahoma, Pennsylvania, and Texas.

Oscar's Virtual Primary Care program, which is powered by its technology platform, was expanded to members on select plans in San Antonio and El Paso. The company also launched an innovative new plan to better serve diabetic members, offering cost-saving benefits such as $0 diabetic eye and foot exams, $0 lab tests to manage diabetes, and a monthly cap on out-of-pocket costs for insulin of $100.

In addition to its expansion across the US, Oscar also celebrated surpassing 1 million members in 2022 and serving approximately 1.6 million members across the country through its differentiated, tech-driven experience.

Oscar's expansion plans demonstrate its commitment to increasing access to high-quality, low-cost healthcare that meets the diverse needs of its members across the United States.

Oscar's partnerships with other companies

Oscar Health, Inc. is a private American health insurance company founded in 2012. The company aims to make health insurance "smart, simple, and friendly", using telemedicine, healthcare-focused technology interfaces, and transparent claims pricing systems to improve the user experience.

Oscar has formed several partnerships with other companies since its founding. Here is an overview of some of these partnerships:

Mount Sinai Health System

In November 2016, Oscar opened the Oscar Center in Brooklyn Heights, New York, in partnership with Mount Sinai Health System. The center offered exclusive primary care services to Oscar policyholders and free classes for members, including yoga and courses for expectant mothers.

Cleveland Clinic

In June 2017, Oscar announced a partnership with the Cleveland Clinic to offer individual health insurance plans to consumers in five counties in Northeastern Ohio.

Humana

In July 2017, Oscar revealed a strategic partnership with Humana to sell small group insurance in the Nashville metro area to companies with up to 50 employees.

Cigna

In January 2020, Oscar and Cigna partnered to bring health insurance plans to small businesses. The collaboration, called Cigna + Oscar, aimed to launch in select markets in 2020 and gradually expand.

+Oscar's Campaign Builder

Oscar also mentions a partnership with +Oscar's Campaign Builder to drive member engagement and action, although the nature of this partnership is less clear. It may be an internal collaboration or a reference to a specific tool or platform developed by Oscar.

These partnerships have allowed Oscar to expand its reach, offer new services, and enhance the overall experience for its members.

Oscar's financial performance

Oscar Health Inc. (OSCR) is a startup health insurance company that uses technology to provide affordable, high-quality healthcare to individuals. The company was founded in 2012 and has since expanded its offerings and geographic footprint, now serving around 1.6 million members across the US.

In May 2023, Oscar released its financial results for the first quarter of the 2023 fiscal year, reporting total revenues of $1.47 billion, a 51% increase year-over-year. This increase was primarily driven by rate increases, which led to higher premiums from Total Direct and Assumed policies. However, the company also experienced a net loss of $39.8 million, an improvement over the $75.2 million net loss in Q1 2022. The net loss was attributed to increased claims, insurance costs, and general and administrative expenses.

Oscar's revenues primarily consist of premiums, with direct policy premiums contributing the most at 96.7% of total premiums earned before reinsurance premiums ceded. The company offers health plans in three insurance markets: Individual and Small Group, Cigna + Oscar, and Medicare Advantage. As of Q1 2023, Cigna + Oscar was the only offering that experienced growth in membership, with an 85.3% increase to 67,108 customers.

In addition to premiums, Oscar also generates revenue from administrative services and investment income. The company's focus on technology and personalized services has helped it earn industry-leading levels of trust, engagement, and customer satisfaction. Oscar's goal is to make healthcare accessible and affordable for all, and it continues to expand its offerings and reach to achieve this.

Oscar's marketing campaigns

Oscars marketing campaigns have been an integral part of the company's growth and expansion strategy. The company has utilized various channels and creative approaches to reach its target audience and convey its brand message effectively. Here is an overview of some notable Oscar marketing campaigns:

• New York City Subway Campaign: Oscar Health ran advertising campaigns on the New York City Subway, featuring cartoons that suggested "an easier way of getting medical care." The campaign used whimsical, animated characters to capture the attention of commuters and convey the message that Oscar offers a simplified approach to healthcare.
• Television Campaign: In 2015, Oscar aired its first television campaign specifically targeted at new parents who might be too busy to navigate the complexities of health insurance. The ad was strategically aired on network stations in the New York and New Jersey areas, cable, movie theaters, and even within the Spotify app.
• Educational Subway Campaign: In 2016, Oscar ran another subway ad campaign, this time with an educational focus. The campaign aimed to shed light on the problems within the American healthcare system and position Oscar as a transparent and consumer-centric alternative.
• Digital Engagement: Oscar has successfully leveraged digital channels to engage its members. 44% of Oscar members are digitally engaged with their online accounts, interacting through digital channels or the dedicated Care Team channels. This digital engagement strategy has been a key component of Oscar's marketing and customer retention efforts.
• Co-Branded Partnerships: Oscar formed strategic partnerships with renowned healthcare providers to offer co-branded health plans. For example, in 2017, Oscar teamed up with Cleveland Clinic to offer a co-branded plan in Northeast Ohio, enrolling 11,000 members. These partnerships not only expand Oscar's reach but also reinforce its commitment to providing quality healthcare options.
• Direct Scheduling and Telemedicine: Oscar has integrated direct scheduling capabilities into its app, allowing customers to schedule appointments conveniently. Additionally, the company offers free 24/7 telemedicine services in most plans, making healthcare more accessible and convenient for its members.

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