- Health insurance tech company Oscar announced it closed a $140 million funding round. These are the details.
Oscar — which is the first health insurance company built on a full-stack technology platform — announced that it has closed a $140 million funding round. This round of funding was led by Tiger Global Management with participation from Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar, and Reinvent. The funding comes as Oscar continues to experience significant growth as the company saw a 74% increase in direct policy premiums over the past three years.
This announcement takes place as Open Enrollment for 2021 closes for much of the U.S. And heading into the new year, Oscar will be available in 18 states and 286 counties across its Individual and Family Plans, Medicare Advantage, and Small group products. As of September 30, 2020, Oscar had approximately 420,000 subscribers across 15 states.
Since Oscar launched in 2012, the company has seen significant growth driven by its industry-leading levels of member engagement. And Oscar members have mobile app downloads that are approximately 9 times the average of other insurers. And 88% of subscribing members have interacted with Oscar digitally. This engagement enables Oscar to get to know its members better and intervene to shift behavior in the direction of healthier and more affordable options.
The combination of Oscar’s member engagement engine and full-stack technology platform enables the insurer to help its members find high-quality care. And 48% of first-time PCP visits for Oscar members are with an Oscar recommended doctor. Since 2014, all of Oscar’s members have had 24/7 access to Oscar’s virtual care offerings in nearly all cases at no additional cost. And of the subscribing members who have had one or more medical visits, 38% have used Oscar’s virtual care offering.
“Since 2017, Oscar has seen annualized membership growth of more than 70%. As we continue to rapidly scale our business, this capital will help us deliver on our commitment to bring accessible and affordable care to even more Oscar members across the country.”
– Mario Schlosser, Co-Founder and CEO of Oscar