Oscar, the first direct-to-consumer health insurance company, announces today that it has closed a $225 million funding round. The round positions Oscar to continue growth off of a $2 billion revenue base and puts the company on a path to further advance its mission of making health care simple.
Cigna+Oscar
This was a big week for Oscar. Earlier in the week, Cigna and Oscar released more details on their Cigna+Oscar partnership to provide affordable, customized health plans to small businesses. Pending regulatory approval, the identified markets for the initial launch include Atlanta, the San Francisco Bay Area, and in cities across Tennessee by the end of the year. Cigna and Oscar plan to share the risk equally under a reinsurance agreement for solutions offered through this strategic partnership. Oscar can lean on Cigna’s massive footprint and brand recognition to build out its customer base and accelerate its expansion plans.
The fully-insured health plans available through Cigna + Oscar include no charge, 24/7 virtual doctor visits, $3 drug co-pays** and dedicated Care Team member support, all coupled with access to multiple Cigna networks of quality physicians, specialists and hospitals. The affordable plans are designed to fit the budgets of small businesses and provide care that’s personalized to employees’ needs.
Together, we are giving small business owners an affordable, simple-to-use option that makes it easier for their employees to get appropriate care quickly and stay healthy. Cigna + Oscar will give these business owners and their employees con- sumer-centric health care coverage and physician networks that provide personalized care.
Joel Klein, Chief Policy and Strategy Officer at Oscar
$225 Million Funding Round
Through its tech-enabled features such as being able to tap into Doctor on Call, Oscar was the first insurance company to offer 24/7 telemedicine at $0. This has driven over 30% of its members who have used telemedicine, compared to just 10% of Americans. The company also has a component that lets users digitally request to have their prescription refilled.
Oscar saw participation from many existing investors, including Alphabet, General Catalyst, Khosla Ventures, Lakestar, and Thrive Capital, reaffirming investors’ confidence in the business model and enthusiasm around its long-term strategy. Oscar is planning to use this latest infusion of cash to expand its footprint.
Transforming the health insurance experience requires the creation of personalized, affordable experiences at scale. At Oscar, we combine our full-stack technology platform and data-driven approach to deliver seamless care that meets members where they are. We have created an experience that feels like you have a doctor in the family. This funding enables us to further accelerate the development of our unique model while creating efficiencies and cost-savings.
Mario Schlosser, Co-Founder and CEO of Oscar
Cigna + Oscar surveyed 1,000 small business decision makers, and found that 88% of U.S. small business decision makers feel the health and well-being of employees is a primary concern following the COVID-19 pandemic. More than 50% of small businesses are considering or unsure about changing their health insurer heading into 2021. And as small businesses begin to reopen, 66% of decision-makers report that providing health insurance to their employees is a higher priority in their budgets.
Oscar is now offered in 15 states and 29 U.S. markets and has over 420,000 members across its individual, Medicare Advantage, and small group products. Some are speculating that Oscar may be following in Lemonade‘s footsteps and priming itself for a public offering.
About Oscar
Oscar is the first health insurance company built to make health care accessible. Headquartered in New York City, Oscar has been challenging the health care system’s status quo since our founding in 2012, developing seamless technology and providing personalized support to help our members navigate their health care. Oscar was the first insurer to offer free, 24/7 telemedicine to members and to integrate direct scheduling with providers through our app.
Oscar plans also include access to a network of first-rate physicians and hospitals, as well as a personalized Concierge team that supports members every step of the way, from finding a doctor to navigating costs. Oscar is known for its easy-to-use digital tools, including a website and mobile app that let members view their health history, speak directly with their Concierge team, and access their account information.
All products and services are provided exclusively by or through operating subsidiaries of Mulberry Health Inc., including Oscar Insurance Company and its affiliates. Say hi or learn more at https://www.hioscar.com or follow us at https://twitter.com/OscarHealth.
About Cigna
Cigna Corporation (NYSE: CI) is a global health service company dedicated to improving the health, well-being, and peace of mind of those we serve. Cigna delivers choice, predictability, affordability, and access to quality care through integrated capabilities and connected, personalized solutions that advance whole-person health. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Cigna Life Insurance Company of New York, Connecticut General Life Insurance Company, Express Scripts companies, or their affiliates, and Life Insurance Company of North America. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products, including group life, accident, and disability insurance.
Cigna maintains sales capability in over 30 countries and jurisdictions and has more than 165 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.
