Oscar raises $165 million to deepen investment in technology platform and accelerate expansion
By Mario Schlosser and Joshua Kushner, Co-founders of Oscar HealthMore than five years ago — long before today’s dizzying array of mergers and new entrants — we knew the only way to fix a broken health care system was to empower the consumer. We started Oscar to secure the trust of consumers, to use data science and technology to proactively guide them to the best and most affordable doctors, and to finally introduce choice, competition, and value to health care. We knew this back in 2012, and our conviction has only grown stronger since.Our investors have consistently believed in Oscar’s long-term vision, in the underlying strength of our business model, and in the talent and drive of more than 700 of the brightest minds from health care, technology, data, and operations. To fuel Oscar’s next phase of growth, we’ve officially closed a $165 million funding round, led by Brian Singerman and Founders Fund and including 8VC, Verily Life Sciences, Fidelity, General Catalyst, Capital G, Khosla Ventures, and Thrive Capital, among others. Our investors’ deep collective experience in health care and technology will be vital to our success in the coming years.After generating an underwriting profit in 2017 and enrolling nearly 250,000 members this year — projecting north of $1 billion in gross premium revenue — Oscar stands strong as the first technology-driven health insurer. Having engineered a custom-designed, full-stack insurance platform linking our real-time analytics infrastructure with the best consumer product in health care, Oscar is now taking the highest levels of member engagement in the industry and translating it into better, easier care for hundreds of thousands of Americans. You can find a comprehensive deep dive into Oscar’s strategy here.This infusion of capital will help us accelerate the pursuit of Oscar’s mission: giving consumers the kind of affordable, high-quality health care they deserve. Bolstered by new partnerships with industry leaders, such as Cleveland Clinic, Humana, and AXA, Oscar now has a proven, replicable growth playbook: secure competitive prices with new health systems, acquire and engage membership in significant volumes, build market share for our provider partners, and begin to drive health care costs down. Expand at a rate of 4-5 cities every year, in individual, small group, and other market segments.This is still only the beginning of Oscar’s journey. We need no reminder that the stakes are high — an opaque, uncompetitive system has led to skyrocketing premiums and deductibles, and far too many Americans have been asked to sacrifice their wages for health care they can’t afford to use. With every new member, Oscar can help bring the system a little closer to where it should be. Back to work.