Oscar Health Inc. managers have tried to take an innovative approach to the design and marketing of health insurance. They tell potential investors that one of the keys to their success is attracting insurance brokers.
The New York-based company filed a registration notice last week that could result in the company selling shares in the company through an initial public offering or public offering.
Oscar warned in the registration statement that one of the risk factors is the possibility that there could be problems with brokers.
Oscar could have problems growing his membership base if “Insurance brokers we rely on to build our membership base cannot effectively market our insurance products, or if we fail to attract brokers to sell our insurance products, or lose important broker relationships to our competitors or to others Way, “said the company.
In another part of the registration statement, Oscar said, « The commissions we offer brokers could also increase significantly as we compete for new members. »
Oscar was founded in 2012 by Joshua Kushner and Mario Schlosser. Kushner is the brother of Jared Kushner, the son-in-law of former President Donald Trump.
The founders initially concentrated on the market for individual large health insurance companies. Since then, the company has specialized in adding small group health insurance and Medicare Advantage plans.
Oscar, through an alliance with Cigna Corp. small group coverage and Medicare Advantage plans through alliances with hospital-run health systems.
The company currently employs around 1,800 people.
IT now has 529,000 subscribers in 18 states. It ended in 2020 and offered individual and small group insurance for around 400,000 people as well as Medicare Advantage plan insurance for 1,924 people.
About three-quarters of the company’s participants are in California, Florida, and Texas.
Oscar has a care team that provides and coordinates care for each participant. Interactions with the care team are reported to help increase customer loyalty.
Oscar left key portions of the current version of the registration statement blank or allegedly entered temporary placeholder numbers.
The IPO could raise at least $ 100 million. Stocks would trade on the New York Stock Exchange under the symbol « OSCR ». Goldman Sachs would top the list of underwriters.
Registration declaration details
For Alphabet Holdings LLC and other Oscar investors, the IPO would create an opportunity to cash out.
For brokers and brokers, the IPO is an opportunity to learn a little about what is happening in a company that, at the time, is primarily focused on the commercial health insurance markets for individuals and small groups.
Today, the largest public health insurers – Anthem Inc., Centene Corp., Cigna Corp., CVS Aetna, Humana Inc., Molina Healthcare Inc., and UnitedHealth Group Inc. – focus primarily on the Medicaid, Medicare or large employers or other markets Activities other than providing health insurance.
Oskar’s reports could give outsiders a better picture of what is happening in the individual and small group markets.
Here are some details from the registration statement:
Results: Oscar reported a net loss of $ 406 million on sales of $ 463 million for 2020, compared to a net loss of $ 261 million on 2019 sales of $ 488 million Positive net cash flow of $ 223 million in 2020 compared to negative cash flow of $ 165 million in 2019.
Reinsurance: In some ways, Oscar is more like a health insurance distributor with some risk than an insurer. In 2020, it retained only 23% of the risk associated with the health insurance it sold. 32% of the risk was transferred to AXA France Vie via one reinsurance arrangement and 45% to Berkshire Hathaway Specialty Insurance Company via another reinsurance arrangement.
Affordable Care Act Premium Tax Credits: Oscar sells much of his coverage through the ACA public exchange system to individuals who qualify for ACA Premium Tax Credits. About 60% of the 2020 direct insurance premiums that Oscar accumulated came from the Centers for Medicare and Medicaid Services in the form of upfront tax credits.
– Read Oscar Insurance Raises $ 225 Million on ThinkAdvisor.
– Connect with ThinkAdvisor Life / Health on Facebook, LinkedIn and Twitter.
Does Oscar insurance cover existing conditions?
Do you want to start with Oscar? An existing illness is one that you have on or before the start date of a new health insurance policy. … Today, health insurers cannot legally refuse coverage or charge different premium rates based on pre-existing conditions.
How can I cover my insurance from the network?
Talk to your PCP and your network specialist. Tell them what you learned in your research. Ask them if they can assist you with medical records. Before you leave the network, ask your insurer to insure you at the in-network tariff.
How much does a doctor’s visit without insurance cost in 2020?
Without health insurance, the average doctor’s appointment costs between $ 300 and $ 600. However, this number depends on the services and treatments required and the type of doctor’s practice.
Is Health Insurance Really Necessary?
Good health insurance is one of the most important elements of your financial plan. It is important to your financial health by protecting you from financial disasters. In fact, having the right type and amount of health insurance is one of the smartest money moves you can make.
Is Oscar Insurance Good?
If you are looking for a reliable company that offers outstanding customer benefits and services, Oscar health insurance is a great choice for insurance coverage. The customer ratings for Oscar are positive overall. Many customers say the online app and doctor on call are the best parts.
Is Ambetter Better Than Oscar?
|BBB rating||A +||A +|
|NAIC Complaint Index||1.12%||1.12% for individual health insurance|
|Market share in percent||20%|
Who Owns Oscar Health?
* The investment was made in Oscar’s parent company, Mulberry Health Inc. ** Clever analysis of the NPS value at the end of 2020 OE compared to consumers who were included in ACA plans in 2018 and gave health insurers an average value of -19.
Is Oscar insurance part of UnitedHealthcare?
Covered California announced on July 27th that it would add two new plans to its portfolio of health plans for 2016: national health giant UnitedHealthcare and New York start-up Oscar Health Insurance. … We are a Californian company even though we have a national footprint. U201d
What does Oscar stand for?
|Awarded for||Excellence in the American film industry|
|Presented by||Academy of Arts and Sciences for Feature Films|
|Awarded for the first time||May 16, 1929|
What does Oscar mean?
Importance. « Friend of the deer », « Spear of God » Oscar or Oskar is a male given name.
Which network does Oscar use?
While your Oscar plan covers preventive laboratory tests, these must be processed by Quest Diagnostics (our preferred partner) or another on-network laboratory in order to be covered. The next time you make an appointment, be sure to ask your doctor’s office to send your labs to Quest.
What is the difference between Oscar health?
What makes Oscar health plans different? From early 2012, Oscar founders wanted to create a health insurance company that would provide easy coverage in an industry that can confuse consumers. … Oscar’s simple plans cover all doctor visits, and screening and generic drugs are free.
Is Oscar Insurance Part of Obamacare?
Oscar currently sells custom Obamacare coverage in 29 markets in 15 states. … Because Americans lost their jobs or health benefits from employers, this has helped health plans like Oscar that sell individual coverage.
Is it worth taking out 2 health insurance policies?
Having access to two health insurance plans can be a real benefit when making health insurance claims. They can increase insurance coverage and save money on your health insurance costs by coordinating the provision of services.
Is Oscar an HMO or a PPO?
PPO plans usually provide some coverage for off-network doctor care, but most HMO and EPA plans, like Oscar, don’t cover off-network care.