The private, tech-forward health insurer has been shaking things up since its inception in 2012. Currently operating in 15 states, it is already working on expanding its footprint despite the inherent setbacks that come with a pandemic economy. Oscar hopes to serve Atlanta, San Francisco, and several cities in Tennessee by the end of the year.
CEO Mario Schlosser describes how a company that hinges on telemedicine can still feel very personal: "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.”
At a time when most healthcare providers are offering telemedicine options to prevent the spread of COVID-19, Oscar reports that 63% of its members’ healthcare interactions are virtual. The company currently has individual, family, business, and Medicare Advantage plans for its 420,000 members.
The insure tech organization secured $225 million in Series C funding last month, a move that will help them expand and continue to develop novel ways for direct-to-consumer service. The funding round included Alphabet (Google’s parent company), General Catalyst, Khosla Ventures, Thrive Capital, Lakestar, and Baillie Gilford. This brings Oscar’s total funding to date up to an impressive $1.5 billion.
At the height of COVID-19 chaos in April, Schlosser announced some cutbacks. Oscar trimmed 5% of its staff in an effort to focus on its mission in times of economic uncertainty. These cutbacks compounded with the massive increase in funds will help the company continue to grow and expand its footprint across the country. It may also help them work towards going public.
With $2 billion currently in their revenue base, Oscar has enjoyed a rare growth spurt in uncertain times. Their focus on technology and virtual offerings have helped them not only keep their heads above water, but have allowed them to thrive while employees and customers alike are under safer-at-home orders. Their user base tends to be actively involved in telemedicine offerings - 30% of Oscar customers engage in virtual healthcare visits compared to the 10% of American consumers overall.