Health insurtech company Oscar Health scored a whopping $225 million in Series C funding from Google’s parent company Alphabet, General Catalyst, Khosla Ventures, Lakestar, Thrive Capital and Baillie Gifford.
This comes roughly two years after the company announced a $165 million funding round led by Brian Singerman and Founders Fund.
WHAT THEY DO
The company offers direct-to-consumer health insurance. Currently it has plans for individuals and families, businesses, and Medicare Advantage plans. Digital tools are a key part of the company’s business model. It reports that 63% of members' interactions with the healthcare system are virtual. Currently its plan covers 15 states and has more than 420,000 members.
The plan has tech enabled features such as being able to tap into Doctor on Call, for free at any time. It also has a component that lets users digitally request to have their prescription refilled.
WHAT IT’S FOR
The company 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," Mario Schlosser, cofounder and CEO of Oscar, said in a statement. "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."
THE LARGER TREND
Insurtech companies have been cropping up in the healthcare industry within the last few years. They are also particularly well-funded.
In December tech-enabled insurance company Bright Health announced the close of a $635 million Series B. Medicare Advantage insurtech company Clover Health raised $500 million in January of 2019. Additionally, Devoted, a Waltham, Massachusetts-based startup, closed a $300 million Series B.
Most recently, in March Alignment Healthcare, a Medicare Advantage (MA) insurer that relies on a tech platform to manage its members' shifting data in real time, scored $135 million in funding.