Earlier this month, market disruptor Oscar Health revealed its projected growth for 2020. At the JP Morgan Healthcare Conference, the healthcare insurance and tech developer announced it expects to enlist around 400,000 members, subsequently earning $2 billion in revenue by the end of the year.
Part of this comes down to the new markets Oscar Health has entered in 2020, which includes offering private Medicare Advantage plans to seniors across New York and Houston. The company is also selling Obamacare plans in 12 new markets for this year, including four new states; Florida, Texas, Virginia, and Georgia.
Approximately 375,000 individual members are currently enrolled in Oscar Health’s plans, and the company serves an additional 20,000 patients through Medicare Advantage, small-group insurance. Just three years ago, the company only had 70,000 members.
During the conference, Oscar Health CEO Mario Schlosser also discussed the fundamental changes he expects to see in the industry. For many US workers, employer-sponsored healthcare plans are the norm, though he expects this to trend to shift. "I do think this will over time lead to a gradual then sudden disappearance of the employer market," Schlosser said during his presentation in San Francisco.
He pointed to the introduction of the Individual Coverage Health Reimbursement Arrangement that allows employers to provide workers with pretax dollars they can use to go out and buy health plans on the individual exchanges or Medicare, rather than paying for group health plans.
This news arrives off the back of the company’s latest partnership with Cigna, where together the giants will launch commercial health insurance plans for small businesses in several U.S. markets. Within the partnership, the two companies plan to “share the risk equally under a reinsurance agreement” to sell fully insured plans to the small group market under the “Cigna + Oscar brand.” Once cleared by regulators, the companies said they will “launch in select markets in 2020 and plan to expand the partnership over time.”
Oscar has raised over $1 billion, exciting investors with its innovative tech-driven approach to health insurance. In August 2018, it raised $375 million from Google's parent company, Alphabet.