Here's a comprehensive look at the growth of Oscar Health since the hot health-insurance startup began signing up customers
- Health insurance startup Oscar Health has hired bankers ahead of an initial public offering, Axios reported in September.
- Founded in 2012, Oscar got its start on the individual exchanges implemented by the Affordable Care Act. It's grown to 420,000 members as of the start of 2020.
- Here's a look at Oscar's enrollment and financial performance from 2014 to 2020.
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Venture-backed health insurance startups are poised to debut on the public markets next year.
Clover Health is going public via a SPAC in a deal that's slated to close in 2021. Bright Health in September said it raised $500 million, suggesting an initial public offering might be a logical next step.
In June, Oscar said it raised an additional $225 million from existing investors like Alphabet and General Catalyst as well as from new investors Baillie Gifford and Coatue. In total, the company has raised $1.5 billion.
In September, Axios reported that Oscar has hired on bankers in preparation for a 2021 initial public offering. A spokeswoman for Oscar declined to comment on the report.
Going public would be a big move for Oscar, an insurance startup that got its start on the individual exchanges set up by the Affordable Care Act.
The company was founded in 2012 by CEO Mario Schlosser, Josh Kushner, whose brother Jared is the son-in-law of President Donald Trump and one of his senior advisors, and Kevin Nazemi.
Oscar's first year offering plans coincided with the first year for the ACA's exchanges, and Oscar has been weathering the ups and downs that came along with it. Notably, its enrollment constricted in 2017 after Oscar left two key markets, and narrowed the network of medical professionals it works with in New York.
Since its start, Oscar has posted annual net losses, a trend that could change in 2020 in the wake of a pandemic that led members to put off getting healthcare.
Through the first six months of 2020, Oscar posted a net gain of $56 million.
Oscar wasn't alone in posting a net gain. Through the first half of this year, the big insurers posted positive earnings, with United Health Group roughly doubling its profits over the same time period of the previous year, and CVS Health beating expectations.
Oscar also stands to make $210 million on an April Supreme Court ruling.
Oscar entered the red-hot Medicare Advantage market in 2020
In addition to offering coverage to individuals, Oscar sells health plans for small businesses. It's also in its first year of selling coverage to seniors through Medicare Advantage plans.
Competition is fierce for the more than 24 million Americans enrolled in Medicare Advantage plans, and for the thousands signing up daily as they turn 65. Startups like Oscar and Clover Health are facing off against industry giants like UnitedHealthcare, Humana, and Aetna.
In 2020, Oscar expects to bring in $2.2 billion in gross revenues after a massive jump in membership. Through the first half of 2020, Oscar had about 420,000 members, including 1,727 people in its Medicare Advantage plans.
Going into 2021, Oscar plans to be in 19 states, up from 15 this year.
Those are: New York, Texas, California, New Jersey, Ohio, Tennessee, Arizona, Michigan, Florida, Pennsylvania, Georgia, Colorado, Iowa, Arkansas, North Carolina, Oklahoma, Kansas, Virginia, and Missouri.
Read more: Oscar Health opened a fancy new headquarters in lower Manhattan less than a year ago. Now the CEO is working from home and rethinking the future of his offices.
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