Alphabet Inc., Google’s parent company, has recently announced that they are investing $375 million into the tech-focused healthcare startup Oscar Health, cofounded by Mario Schlosser and Joshua Kushner. This funding adds onto the $165 million Oscar raised earlier this year from Alphabet, Founders Fund and other sources.
This latest investment will help the company move into its next planned phase of expansion, entering the Medicare Advantage market (Medicare health plans offered by private companies that contract with Medicare). The Medicare Advantage market has yielded great earnings for insurers, with UnitedHealth Group, Aetna, Humana, Cigna, and other big companies contracting with the federal government to create private plans offered through Medicare Advantage. The company will also be adding former Youtube CEO and Google veteran, Salar Kamangar, to their team.
Oscar Health was created in 2012, with their mantra being to “empower the consumer” with technology and data. The company states that 63% of all interactions with insurance members occur virtually. With over 40% of their clients using the website or app, Oscar is living up to their claims of integrating tech into healthcare.
Offering 24/7 phone calls to doctors, Oscar has been praised for its customer-oriented approach to healthcare. Their “concierge team” embodies this customer focused business model in the form of a care guide team that handles all your calls, personalizing the experience.
Oscar added 3 more states, Florida, Arizona and Michigan to its territory this past June, expanding upon the preexisting six (California, Ohio, New York, New Jersey, Texas and Tennessee). This puts the company at 14 total markets, 260,000 members, and $1 billion in premiums.
Sources: Fortune, Mobi Health News, Oscar Health
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