Oscar Health, the new health care insurance company and technology developer, expects to have approximately 400,000 members insured under their health care plans, which collectively will generate approximately $ 2 billion in revenue for the company by the end of 2020, according to the slides of a presentation of the JP Morgan Healthcare conference seen by TechCrunch.
Those figures, based on the open enrollment period that has just closed, would represent a 50% growth in both membership and income for the health care provider co-founded by Mario Schlosser and Joshua Kushner, founder of the venture capital firm Thrive Capital and brother of Trump's chief advisor, Jared Kushner.
Earlier today, Oscar announced that he was partnering with Cigna to provide services to small business owners. Commercial health insurance is a small but growing proportion of Oscar's total membership, and is an area where the company expects to expand. Essentially, Oscar can bring its technology-enabled health care services to small businesses in concert with the large health care networks that companies are accustomed to working with.
To date, Oscar has about 375,000 individual members in his insurance plans, and another 20,000 come from small group insurance and the balance derived from Medicare Advantage clients, according to a person familiar with the company's business.
Only three years ago, Oscar was a much smaller company with only 70,000 members after reducing its coverage and withdrawing from the markets in Dallas-Fort Worth and New Jersey. From a footprint that encompassed New York, San Antonio, Los Angeles, Orange County and San Francisco, Oscar now expects to operate in 29 markets by the end of 2020.
Feeding that expansion are the prodigious infusions of capital that the company has received in recent years. In 2018 alone, Oscar raised $ 540 million from investors, including Alphabet, Founders Fund, Capital G (the later-stage investment firm of Alphabet) and Verily, Alphabet's investment firm focused on life sciences. In total, Oscar Health He has raised $ 1.3 billion to fulfill his vision of providing better health care services through technologies such as a mobile application for telemedicine, medical consultations, reservation appointments, prescription refills and a health care experience more similar to that of a Concierge for its members.
Initially, the company took advantage of the creation of the Law of Health Care at Low Price of new markets for people to buy health insurance when it was launched in 2012, but now it is looking to boost its growth by adding more agreements with insurance providers such as Cigna for small businesses.
Ultimately, the company visualizes a health care industry in which the plans defined by the employer will disappear as more consumers resort to the individual-covered health reimbursement Arrangements. In that environment, Oscar's bespoke services, such as the recent partnership with the startup Capsule Pharmacy to provide same-day prescription delivery for Oscar members in New York, or the company's close relationship with providers such as the Clinic Cleveland, become competitive advantages.