Health insurer for consumers Oscar raised another $ 225 million in its latest round of late-stage financing, as its vision of high-tech medical services to lower consumer spending is becoming more and more reality.
To prevent potential exposure of the patient to the new COVID-19 coronavirus, most medical practitioners remotely monitor patients through virtual consultations, and more and more patients voluntarily use digital medical services, which reduces costs for insurers and potentially provides better access to basic healthcare needs. Indeed, Oscar now has a revenue base of $ 2 billion, and now a fresh pile of cash.
“Transforming the experience of health insurance requires creating personalized, affordable experience on a scale,” said Mario Schlosser, co-founder and CEO of Oscar.
According to the company, Oscar insurance customers are considered one of the most active users of telemedicine among all insurance companies in the United States. About 30 percent of patients with insurance plans from the company used telemedicine services, compared with 10 percent of the country’s population.
New late-stage funding for the Oscars includes new investors Bailey Gifford and Coatu, two late-stage investors who usually come before a public offering. Other previous investors, including the Alphabet, General Catalyst, Khosla Ventures, Lakestar and Thrive Capital also took part in the round.
With new funding, Oscar was able to ignore the latest criticisms and controversy surrounding the company and its relationship with White House officials Jared Kushner when the president prepared his response to the COVID-19 epidemic.
As reported in the AtlanticOscar engineers spent several days creating a self-contained website that would ask Americans to report their symptoms on their own and, in case of risk, send them to the COVID-19 test site. According to the same report, the project was decommissioned within a few days after its creation.
The company currently offers services in 15 states and 29 US cities, with over 420,000 members in individual, Medicare Advantage and small group products, the company said.
Since Oscar receives more ballast on his balance sheet, he can prepare for a public offer. The insurer will not be the first new startup to test the appetite of a state investor for new listings. Lemonade, which provides personal and home insurance, already filed to go public,
Oscar investors and executives can closely monitor how this listing works. Despite its anemic goal, a public market reaction may signal that more insurance startups can make lemonade out of frothy market conditions – even though the number of employees and the national economy as a whole continue to suffer from pandemic economic shocks.