Insurtech company Oscar Health is launching a new business, called +Oscar, to give providers and third-party payors access to its tech-enabled insurance platform.
Oscar got its start in 2012 selling individual-only insurance plans. Since then, it has grown to support individual, small group and Medicare Advantage plans across 18 U.S. states. It also offers virtual care options and a search tool for finding local in-network doctors, hospitals and pharmacies.
“We have built Oscar from day one with an eye toward using our technology to power as much of the healthcare ecosystem as possible,” Mario Schlosser, CEO and cofounder of Oscar, said in a statement.
“Today, we are excited to launch +Oscar and meet the demand for our platform within the provider and payor space. It’s an affirmation of our vision from those early days and will serve as a critical growth driver for our business in the years to come.”
WHAT’S THE IMPACT?
+Oscar focuses on giving provider-sponsored and regional health plans the services and technological capabilities of larger health plans, according to the announcement.
With access to Oscar’s full-stack technology platform, clients can create flexible plan designs to meet member needs. The platform also integrates with existing electronic medical records and workflow tools, giving providers insights into their patient’s health information.
All told, Oscar said it hopes the +Oscar offering will lower costs, drive member growth and retention, deliver a consumer-centric experience and empower providers to manage care at scale.
Leading the new business is Meghan Joyce, the COO of Oscar and who helped launch its virtual primary care offering and the Cigna+Oscar small group product. In her new role, she will be responsible for +Oscar’s growth, as well as supporting existing partners.
THE LARGER TREND
Earlier this year, Oscar announced its initial public offering and officially hit the public markets in March.
Interest in the insurtech space has been growing over recent years as people crave new, consumer-friendly approaches to health insurance.
Bright Health is another big name in insurtech. The company is well-funded, having brought in more than $1.5 billion since 2016. Most recently, it made headlines for buying telehealth startup Zipnosis for an undisclosed sum. There are also rumors circulating that the company is eyeing an IPO for later this year.
There’s also Clover Health, which went public in 2020 by merging with special purpose acquisition company Social Capital Hedosophia Holdings Corp. III. But earlier this year Clover found itself embattled by a short-seller report criticizing Clover's business practices and spreading word of a Department of Justice inquiry. Its CEO and president have since responded in defense of their company.
ON THE RECORD
“Oscar’s superpower has always been member engagement,” Meghan Joyce, COO and EVP of +Oscar, said in a statement. “We’ve built a member engagement engine that has been second to none at influencing member behavior and have made great strides in bending the cost curve.
"We have a proven track record with the Oscar insurance business and are excited to offer our member engagement services to others across the U.S. healthcare ecosystem and expand the impact we can make.”