On the heels of a $140 million funding round, insurance startup Oscar Health has confidentially filed to go public. On Monday, the company confirmed that it had filed IPO paperwork with the U.S. Securities and Exchange Commission, for an undetermined amount.
Oscar is one of a growing number of insurance startups touting their technology platforms as a key component of their health plans. Oscar got its start in 2012 by offering individual plans on the ACA exchanges, using narrow networks to offer plans with a lower premium. The startup is led by CEO Mario Schlosser, and includes Josh Kushner, a managing partner with Thrive Capital and Jared Kushner’s brother, as one of its backers and co-founders.
While Oscar continues to expand its individual market plans into more states, Medicare Advantage plans are also a growing part of its business. The startup also teamed up with Cigna recently to offer small group plans in Atlanta, San Francisco and several locations in Tennessee.
The company had roughly 420,000 members across 15 states as of September. Next year, Oscar will have plans available in 286 counties across 18 states.
Oscar recently raised a $140 million round led by Tiger Global Management, which it said it would use to further its growth. That’s on top of another $225 million the startup had raised earlier this summer. But it has also faced some challenges since the start of the pandemic, including spending reductions that resulted in the company laying off a small number of staff in April.
Other insurance startups are seeking IPOs, or have reached a scale where one might be possible. Bright Health, the startup founded by former UnitedHealthcare CEO Bob Sheehy, closed a $500 million funding round this fall. It also offers individual market plans, Medicare Advantage plans and small group plans.
Meanwhile, Clover Health, a startup that primarily offers Medicare Advantage plans, went public in October in a blank-check deal led by investor Chamath Palihapitiya’s Social Capital. It reported a $177 million net loss in 2018 and a $176 million net loss last year, but says it plans to be profitable by 2023.
Photo credit: jxfzsy, Getty Images
