Despite an unknown future for the Affordable Care Act, Oscar Health is doubling down with an innovative partnership and plans for expansion. Betting on their “tech-driven insurance products and concierge-style member experience,” Oscar Health intends to sell ACA marketplace plans in double the states next year (six states in 2018 versus three this year).
The team at Oscar Health – which includes Joshua Kushner, brother-in-law of Ivanka Trump – believes their first few years of losses aren’t any indication of the potential for a new kind of health insurance company that wants a foothold in the millennial generation.
"If you put a product out in the market that is less like traditional health insurance and sick care-oriented, and much more a consumer product that people want to engage with, that they like to tell their friends and family about, that pays them a dollar day to walk steps and things like that, you are going to attract … plenty of 25- and 35-year-olds who just want to have good healthcare," Oscar CEO and co-founder Mario Schlosser said.
Continuing to buck trends, Oscar Health just announced a joint venture with the esteemed Cleveland Clinic that further differentiates the offering. Plan members will be paired with Cleveland Clinic care teams – including a primary care doctor, physician assistants and other clinicians – and a “concierge team” from Oscar Health that consists of a nurse and three “care guides” to help the member navigate the healthcare system. The end goal: to improve outcomes and keep costs down through coordinated care.
Why This Matters
Many have blamed “invincible” millennials for Obamacare problems, leading to some thoughts that millennials and health insurance will never see eye to eye. But, as we reported back in May 2015 in our report on seven healthcare brands that are succeeding with millennials, Oscar Health’s quest to be simple, human, smart and different is out to appeal to the coveted cohort. While 73% of millennials with health insurance say they’re already doing everything they can to maintain a healthy lifestyle, Oscar Health is confident they can do better. More than half (52%) of millennials agree that health insurance, or lack thereof, prevents them from seeking the care they need. With new options like the Oscar-Cleveland Clinic JV, foregone care for Gen Y may be a thing of the past.