New York-based insurtech startup Oscar Health has announced the biggest market expansion in its history, with plans to enter 12 new geographies in 2020.
The company will begin services in six additional states: Colorado, Georgia, Kansas, Missouri, Virginia and Pennsylvania, and will expand its presence in Florida, Michigan and Texas.
All told, the company will be active in 26 markets across 15 states, pending regulatory approval.
“Oscar’s expansion proves that our commitment to making health care easy — by developing seamless technology and providing personalized support — is working. I have never been prouder of the work Oscar is doing to positively impact our members’ lives,” said Oscar CEO Mario Schlosser said in a statement. “We look forward to serving our new and current members in 2020.”
Oscar was founded in 2012 and has raised around $1.3 billion from investors, most recently at a $3.2 billion valuation. The company’s core business is offering plans in the individual marketplaces, but it has broadened its offerings to include small group plans and soon Medicare Advantage plans.
The company’s new expansion plans come on top of Oscar’s previously announced entry into the MA markets in New York and Houston, which was enabled by a $375 million funding round from Alphabet last year.
Last year, the company made more than $1 billion in gross premium revenues and has grown its membership base to around 257,000 people, according to insurance commission filings.
Earlier this month, the company signed a reinsurance deal with Berkshire Hathaway giving Oscar additional capital flexibility with which to expand.
The company’s growth around the country has not always been smooth sailing, particularly in Florida where it has been locked in a protracted legal battle with insurer Florida Blue over what Oscar has characterized as anti-competitive practices.
Picture: Feodora Chiosea, Getty Images
