Oscar Health

Oscar Health, Inc.

Company type	Public
Industry	Health insurance
Founded	2012 (2012)
Founder	Joshua Kushner, Kevin Nazemi, Mario Schlosser
Headquarters	New York City , United States
Area served	United States
Key people	Mario Schlosser (President of Technology), Mark Bertolini (CEO)
Products	Health insurance plans, Medicare Advantage plans
Website	www.hioscar.com

Oscar Health, Inc. is an American health insurance provider established in 2012 by Joshua Kushner, Kevin Nazemi, and Mario Schlosser, with its headquarters located in New York City. The company operates within the health insurance sector, utilizing telemedicine, technology-enhanced platforms, and clear claims pricing to streamline patient navigation and improve customer experience.

2012–2015

Oscar was founded by Harvard Business School alumni Schlosser, Kushner, and Nazemi. Upon its formal incorporation in 2013, the parent entity Thrive Partners III was owned by Joshua and Jared Kushner. The company began selling insurance policies in 2013, aligning with the rollout of the Affordable Care Act exchanges and the individual mandate for coverage starting in 2014. Initially, Oscar enrolled about 16,000 members and expanded into New Jersey by 2015, growing its membership to nearly 40,000.

2016

By the year 2016, Oscar's membership had grown to 145,000 across states including New York, New Jersey, California, and Texas. That August, the company extended its operations to Tempe, Arizona, where it established its Concierge teams—dedicated member service units. On August 23, Oscar announced its decision to withdraw from the New Jersey Marketplace at the end of the year due to market instability impacting both operational efficiency and quality of care. Simultaneously, it reduced its provider network in New York by half to better manage costs and patient experience amid escalating premiums.

In November 2016, Oscar inaugurated the Oscar Center through a collaboration with Mount Sinai Health System located in Brooklyn Heights, providing primary care exclusively for Oscar members. The center staffed a physician, nurse practitioner, behavioral health expert, and offered complimentary classes such as yoga and prenatal care for members. This facility temporarily ceased operations on March 13, 2020.

2017

On April 25, 2017, Oscar expanded into the small group insurance market by introducing health plans in New York. By mid-June, it partnered with Cleveland Clinic to offer individual health coverage across five counties in Northeastern Ohio. Later that month on June 21, Oscar revealed plans for further expansion in 2018 targeting Tennessee, Ohio, Texas, New Jersey, and California markets. On July 12, it launched small group insurance products in the Nashville metropolitan area for businesses with up to 50 employees through a strategic alliance with Humana.

In October 2017, a report from the New York Times questioned Oscar's connections to Saudi Arabia following visits by founders Jared and Joshua Kushner to Saudi Crown Prince Mohammed bin Salman. Although company leadership denied any direct Saudi investment in Oscar Health, a $165 million funding round was announced five months after Joshua Kushner’s visit. Jared Kushner reported $8.2 million in capital gains from Thrive funds in May 2018.

2020–present

In January 2020, Oscar Health formed a partnership with Cigna to provide health insurance plans specifically designed for small businesses. This initiative launched initially in select markets with intentions for broader rollout. By mid-2020, Oscar offered individual plans both directly and through health insurance marketplaces across New York, Texas, and California while also providing Medicare Advantage plans in New York City and Houston. Mario Schlosser serves as CEO after previously sharing the role until Nazemi’s departure in 2015. Jared Kushner remains a significant shareholder influencing company strategy as well as recruitment and marketing efforts.

Oscar Health completed a $1.2 billion initial public offering in March 2021. At that time, the company reported having approximately 1.1 million members on its platform—equivalent to about one out of every thirteen enrollees on ACA exchanges. In 2022, Oscar announced plans to exit the Arkansas and Colorado markets to prioritize profitability. On April 3, 2023, Schlosser transitioned into the role of President of Technology while healthcare executive Mark Bertolini was appointed as CEO.

Marketing and brand

Oscar Health's promotional approach features advertisements in the New York City Subway that use animated characters to highlight the simplicity of medical care. Bloomberg News pointed out that these ads stress the ease of obtaining healthcare, while AdWeek remarked on their playful and lighthearted design. In 2015, Oscar introduced its inaugural television campaign aimed at new parents feeling overwhelmed by the complexities of choosing health insurance. This campaign was broadcast across New York and New Jersey on network television, cable channels, movie theaters, and Spotify. The 2016 subway advertisements were designed to inform commuters about the difficulties present in the American healthcare system.

Funding

Oscar Health has raised capital through several investment rounds, attracting backers such as Thrive Capital, General Catalyst Partners, Khosla Ventures, CapitalG, and Fidelity Investments.

In May 2014, Founders Fund spearheaded the Series A financing with a $30 million contribution, placing the company's valuation at $800 million. The Series B round in 2015 secured $145 million, increasing total funding to $300 million and valuing Oscar at $1.5 billion. Notable participants included Formation 8, Horizons Ventures, Wellington Management Company, and Goldman Sachs.

By September 2015, investments from Google Ventures and Google Capital elevated the valuation to $1.75 billion. The Series C round in 2016 raised $400 million led by Fidelity Investments, boosting valuation to $2.7 billion. Alphabet made an additional investment of $375 million in 2018.

As of 2019, Oscar had accumulated $1.3 billion in funding with a valuation of $3.2 billion. In June 2020, the company secured $225 million from both existing and new investors including Baillie Gifford and Coatue, reinforcing its financial standing and market expansion.

Revenue

By May 2014, Oscar Health had enrolled 16,000 members generating an estimated revenue of $72 million. The subscriber count increased to 40,000 in 2015 with average annual premiums around $4,500, leading to roughly $180 million in revenue. Nonetheless, the company experienced substantial losses, including a $92.4 million deficit in New York due to underestimating enrollment health risks.

In 2016, membership grew to 135,000 subscribers, approximately half residing in New York State. Despite this expansion, Oscar reported a loss of $204.9 million that year. Early in 2017, losses began decreasing as the company enhanced cost control measures, posting a $57.6 million loss during the first half of 2017 compared to $83 million for the same period in the previous year.

Oscar forecasted significant growth with expectations of reaching $1 billion in revenue and enrolling 250,000 members throughout 2018. By January 2020, the company served 400,000 members and projected revenues of $2 billion by year-end, reflecting its growing market presence and evolving operational model.

Headquarters and offices

Oscar’s main office is located in Tribeca, New York City, complemented by a technology hub in Los Angeles and a member services facility in Tempe, Arizona. These sites underpin the company’s operations and strategic development within the health insurance sector.