In what could be a step to tap the spiralling demand for digital health services during the global Covid-19 pandemic, insurance startup Oscar Health has filed for an initial public offering with the Securities and Exchange Commission. The startup, which came into the insurance picture nearly a decade ago, may trade on the New York Stock Exchange under the ticker “OSCR”. However, the company has neither disclosed the number of shares on offer nor the price.
- The company has been betting big on their technology to stand out from larger, less nimble competitors. Its app allows patients to check lab test results, seek prescription refills or call in for a virtual urgent care appointment. Besides, the insurer offers a virtual primary care service in some of its markets.
- With operations in 291 counties in 18 states and a member base of little over 400,000 (2020), the company remains a minnow in front of giants like UnitedHealthcare and Anthem. While UnitedHealth Group had 48 million members as of last September, Anthem had 43 million.
- To expand its reach and profile, the startup began offering Medicare Advantage plans in 2020 before collaborating with Cigna to offer a co-branded plan for small businesses. The company has 3,221 members in its Medicare Advantage. This number is considerably low compared to other startups like Alignment Healthcare (64,461 members) and Clover Health (31,558 members).
- The company has not been profitable since 2012, and had a deficit of $1.43 billion at the end of last decade. The revenue of the company has tanked over the last couple of years. Its revenue in 2020 stood at $462.8 million, a little less than $488.2 million made in 2019. Its net loss stood at $406.8 million, which was $261.2 million in 2019.