Oscar raises $225 million
Oscar, “the first direct-to-consumer health insurance company,” has closed a $225 million funding round, bringing its total amount raised to almost $1.5 billion. Existing investors include Alphabet, General Catalyst, Khosla Ventures, Lakestar and Thrive Capital, among others, and new investors Baillie Gifford and Coatue, participated in the round. The new funding “reaffirms investors’ confidence in Oscar’s business model and enthusiasm around its long-term strategy,” and it 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.”
Founded in 2012, Oscar is now offered in 15 states and 29 US markets, counting over 420,000 members across its individual, Medicare Advantage, and small group products. The company “is driving industry-leading levels of engagement” with mobile app downloads that are five times the average of top insurers. It achieved a member-reported NPS score of ~36, compared to the industry average of -12, and it claims to be the first health insurance company to offer 24/7 telemedicine at $0, resulting in 30% of members using the service, compared to just 10% of Americans.
In April, the company laid off 5% of its workforce as it had to make sure that every dollar it spends goes towards the improvement of members’ health, their healthcare experience and the costs they bear for getting excellent health care, according to a post by cofounder and CEO Mario Schlosser.
The company also recently announced the first markets for its joint health plan partnership with Cigna, which will offer “a new affordable and consumer-first health insurance for small businesses.”
“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.