Oscar Health Insurance Is Transforming The System

shutterstock_96276821

Oscar Health Insurance could soon be taking the country by storm.  Despite having just 16,000 users that are solely in New York state, the company raised $80 million in a round of Series A funding according to an announcement on their website.  Oscar's goal is to bring transparency and a more skillful approach to an outdated healthcare system.  The Series A funding values Oscar at $800 million, an incredible valuation for a company less than a year old, according to Steven Bertoni of Forbes.com. An 11x sales multiple.

The platform is user-friendly and allows you to compare prices while making online bill payments a breeze compared to traditional competitors like Aetna and UnitedHealth.  Oscar also allows you to consult physicians at no extra charge.  There is no doubt that the company is trying to transform healthcare.

With the new funding, the company plans to expand their platform into new markets as well as recruiting and hiring more talent. However, they face a tough task in an industry that is highly regulated and is dominated by interest groups.  Co-Founder Josh Kushner echoed this sentiment on the company's Tumblr page: "There is a common misconception that raising capital is correlated with success. Financing is not innovation, nor should it be celebrated." Oscar is off to a great start.

By: Tommy King

(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//www.google-analytics.com/analytics.js','ga');</p> <p> ga('create', 'UA-46138012-1', 'medicalgroups.com'); ga('send', 'pageview');</p> <p> var fb_param = {}; fb_param.pixel_id = '6017496729894'; fb_param.value = '0.01'; fb_param.currency = 'USD'; (function(){ var fpw = document.createElement('script'); fpw.async = true; fpw.src = '//connect.facebook.net/en_US/fp.js'; var ref = document.getElementsByTagName('script')[0]; ref.parentNode.insertBefore(fpw, ref); })(); <img src="https://www.facebook.com/offsite_event.php?id=6017496729894&value=0.01&currency=USD" alt="" style="display:none" />