D2C Health Insurance Company Oscar Raises $225 Million

By Dan Anderson ● June 29, 2020
  • Oscar — the first direct-to-consumer health insurance company — announced that it has raised $225 million in funding. These are the details about the funding.

Oscar — the first direct-to-consumer health insurance company — announced that it has raised $225 million in funding. This round of funding positions Oscar to continue its growth off of a $2 billion revenue base and it puts the company on a path to further advance its mission of making health care simple.

The funding round saw participation from several existing investors, including Alphabet, General Catalyst, Khosla Ventures, Lakestar and Thrive Capital. And new investors Baillie Gifford and Coatue also joining the round. This funding round reaffirms investors’ confidence in the company’s business model and enthusiasm around the long-term strategy.

“Transforming the health insurance experience requires the creation of personalized, affordable experiences at scale,” said Oscar co-founder and CEO Mario Schlosser. “At Oscar, we combine our full-stack technology platform and data-driven approach to deliver seamless care that meets members where they are. We have created an experience that feels like you have a doctor in the family. This funding enables us to further accelerate the development of our unique model while creating efficiencies and cost-savings.”

Launched in 2012, Oscar is known for driving industry-leading levels of engagement with mobile app downloads that are five times the average of top insurers. And Oscar’s unique model results in high levels of member trust and satisfaction with a member-reported NPS score of ~36 compared to the industry average of -12.

Oscar was the first health insurance company to offer 24/7 telemedicine at $0. And over 30% of all Oscar members have used telemedicine, compared to 10% of Americans. After an expansion in 2020, Oscar is now offered in 15 states and 29 U.S. markets. And it has over 420,000 members across individual, Medicare Advantage, and small group products.