Oscar Health, Inc. (OSCR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a health insurance company blends technology with a mission to make healthcare accessible? Oscar Health, Inc., founded in 2012, aims to do just that, but how exactly does it work and generate revenue? Let's delve into the history, ownership structure, and operational model of Oscar Health to understand its position in the health insurance market.

Founded in 2012 by Joshua Kushner, Kevin Nazemi, and Mario Schlosser, Oscar Health was born out of frustration with complicated healthcare billing systems. The company's mission is to make healthcare easy to understand, simple to use, and more affordable for everyone. As of 2024, Oscar Health boasts approximately 1.6 million members, reflecting its growing presence and impact in the health insurance sector.

In 2023, Oscar Health reported a revenue of $5.86 billion, but also experienced an operating loss of $236 million and a net loss of $271 million. Despite these losses, the company's total assets stand at $3.60 billion, with total equity at $806 million. Join us as we explore how Oscar Health navigates the complexities of the health insurance industry, striving to provide user-friendly and technologically advanced healthcare solutions.

Oscar Health, Inc. (OSCR) History

Founding Timeline

Year established

The company was established in 2012.

Original location

The company was originally located in New York City.

Founding team members

The founding team members included:

• Mario Schlosser
• Josh Kushner
• Kevin Nazemi

Initial capital/funding

The initial capital funding included a \$40 million Series A round led by General Catalyst Partners in 2012.

Evolution Milestones

Transformative Moments

Several transformative moments have shaped the company’s trajectory:

• Focus on Technology: Embracing technology to streamline healthcare processes and enhance member experience.
• Strategic Partnerships: Forming partnerships with healthcare providers like Cleveland Clinic to expand service offerings and market reach.
• Expansion into New Markets: Expanding into new geographic markets to increase membership and revenue.
• Emphasis on Virtual Care: Prioritizing virtual care services to improve accessibility and convenience for members.

For additional insights into the company's financial standing, consider reading: Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors

Oscar Health, Inc. (OSCR) Ownership Structure

Understanding Oscar Health's ownership structure provides insight into who controls the company and how its governed. A diverse range of investors, from institutional giants to individual shareholders, shapes the company's direction.

Oscar Health's Current Status

Oscar Health Inc. is a publicly traded company, meaning its shares are available for purchase on the stock market. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol OSCR.

Oscar Health's Ownership Breakdown

As of April 2025, the ownership of Oscar Health is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership breakdown:

Oscar Health's Leadership

The leadership team guides Oscar Health's strategic direction and day-to-day operations. Key members of the leadership team include:

• Mark Bertolini: Chief Executive Officer
• Sid Sankaran: Chief Financial Officer
• Dr. Sameer Amin: Chief Medical Officer

These individuals bring a wealth of experience and expertise to the company, helping to drive its growth and innovation in the health insurance market. You might be also interested in Mission Statement, Vision, & Core Values of Oscar Health, Inc. (OSCR).

Oscar Health, Inc. (OSCR) Mission and Values

Oscar Health aims to make healthcare simple, transparent, and human. The company focuses on leveraging technology and data to provide a better healthcare experience for its members, emphasizing user-friendly services and personalized care.

Oscar Health's Core Purpose

Official mission statement

Oscar Health's mission statement is: 'To make a healthier life easier for everyone.'

• Oscar Health aims to use technology and a member-focused approach to simplify healthcare.
• The company strives to offer personalized care and easy-to-understand services.
• Oscar Health wants to empower individuals to take control of their health and well-being.

Vision statement

While Oscar Health does not have a single, explicitly publicized vision statement, their actions and communications suggest a vision focused on:

• Creating a healthcare system that is patient-centric and technologically advanced.
• Expanding access to quality, affordable care.
• Using data and innovation to improve health outcomes and lower costs.

Company slogan/tagline

Oscar Health has used several taglines and marketing messages that reflect its core values. These include:

• 'Healthcare that makes sense.' This tagline emphasizes simplicity and clarity in healthcare services.
• 'Smarter healthcare.' This highlights the use of technology and data to improve the healthcare experience.
• 'Oscar is a new kind of health insurance company.' This positions Oscar as an innovator in the health insurance industry.

To delve deeper into Oscar Health's financial standing, explore Breaking Down Oscar Health, Inc. (OSCR) Financial Health: Key Insights for Investors.

Oscar Health, Inc. (OSCR) How It Works

Oscar Health, Inc. operates as a health insurance company offering a range of plans and services focused on technology and customer service to provide healthcare coverage. To learn more, see: Mission Statement, Vision, & Core Values of Oscar Health, Inc. (OSCR).

Oscar Health's Product/Service Portfolio

Oscar Health's Operational Framework

Oscar Health focuses on leveraging technology and data to improve the healthcare experience for its members. Key aspects of their operational framework include:

• Technology-Driven Platform: Oscar Health uses a proprietary technology platform to manage claims, member services, and provider relations. This platform aims to streamline processes and improve efficiency.
• Care Teams: Members have access to dedicated care teams that provide personalized support and guidance. These teams can help members navigate the healthcare system, find doctors, and manage their health conditions.
• Virtual Care: Oscar Health offers virtual care options, allowing members to connect with doctors and other healthcare providers remotely. This can improve access to care and reduce costs.
• Data Analytics: The company uses data analytics to identify trends, personalize care, and improve outcomes. This data-driven approach helps Oscar Health make informed decisions and optimize its operations.

Oscar Health's Strategic Advantages

Oscar Health's strategic advantages include:

• Technology Focus: Their technology platform is designed to provide a seamless and user-friendly experience for members and providers.
• Customer Service: Oscar Health emphasizes customer service, aiming to provide personalized support and build strong relationships with its members.
• Innovative Products: The company offers a range of innovative products and services, such as virtual care and personalized care teams, that differentiate it from traditional health insurers.
• Geographic Expansion: Oscar Health has been expanding its geographic footprint, entering new markets and increasing its membership base. As of January 1, 2024, Oscar Health was available in 22 states and around 630 counties.

Oscar Health, Inc. (OSCR) How It Makes Money

Oscar Health, Inc. primarily generates revenue by offering health insurance plans to individuals, families, and small businesses, focusing on technology and customer service to differentiate itself in the competitive insurance market.

Oscar Health, Inc.'s Revenue Breakdown

The following table provides a breakdown of Oscar Health's revenue streams, their percentage of the total revenue, and their growth trends based on the most recent financial data.

Oscar Health, Inc.'s Business Economics

Oscar Health operates with a business model centered on leveraging technology to improve the healthcare experience for its members. Key aspects of its business economics include:

• Technology-driven platform: Oscar Health invests heavily in its technology platform to streamline operations, enhance member engagement, and improve healthcare outcomes.
• Focus on member engagement: The company emphasizes member engagement through personalized support and digital tools, aiming to improve member satisfaction and retention.
• Risk management: Effective risk management is crucial for Oscar Health, as it directly impacts profitability. The company employs various strategies to manage risk, including reinsurance and careful underwriting.
• Geographic expansion: Oscar Health strategically expands its geographic footprint to increase its member base and revenue potential.

To gain more insights into the company's guiding principles, you might find this resource helpful: Mission Statement, Vision, & Core Values of Oscar Health, Inc. (OSCR).

Oscar Health, Inc.'s Financial Performance

Analyzing Oscar Health's financial performance involves looking at key metrics that indicate the company's efficiency, profitability, and growth trajectory. Here are some important considerations:

• Revenue Growth: Monitoring the growth rate of premium revenue is essential to assess the company's ability to attract and retain members. For the year ended December 31, 2024, total revenue increased by $2.6 billion, or 47%, from $5.5 billion for the year ended December 31, 2023 to $8.1 billion.
• Medical Loss Ratio (MLR): The MLR, which represents the percentage of premium revenue spent on medical claims, is a critical indicator of underwriting performance. In 2024, the medical loss ratio was 74.7%, compared to 81.8% for the year ended December 31, 2023.
• Administrative Expense Ratio: This ratio measures the percentage of revenue used to cover administrative costs. Keeping this ratio under control is vital for achieving profitability. For the year ended December 31, 2024, the administrative expense ratio was 20.4%, compared to 24.4% for the year ended December 31, 2023.
• Net Loss/Profit: Tracking net income or loss provides a clear picture of overall financial health. For the year ended December 31, 2024, the Company had net loss of $75.5 million, compared to net loss of $386.4 million for the year ended December 31, 2023.
• Membership Growth: Increasing membership indicates the growing market acceptance of Oscar Health's insurance products. As of December 31, 2024, membership increased 31% to approximately 1,313,000, from approximately 1,003,000 as of December 31, 2023.

Oscar Health, Inc. (OSCR) Market Position & Future Outlook

Oscar Health is navigating a competitive health insurance market with a focus on technology and customer experience, striving for profitability and sustainable growth. The company's future hinges on its ability to effectively manage medical costs, expand its membership base, and capitalize on its technology platform.

Competitive Landscape

Note: Market share percentages are approximate and based on available data and industry reports for the 2024 fiscal year. These figures can fluctuate due to ongoing market dynamics and company performance.

Opportunities & Challenges

Industry Position

Oscar Health is a relatively new player in the health insurance industry, seeking to disrupt traditional models with its technology-first approach.

• Focus on individual and small group markets.
• Emphasis on a user-friendly digital experience.
• Building partnerships with healthcare providers.

Learn more about Oscar Health's investors: Exploring Oscar Health, Inc. (OSCR) Investor Profile: Who’s Buying and Why?