Oscar Health files IPO paperwork under wraps

New York-based health insurance startup Oscar Health announced Monday it has submitted confidential paperwork for its initial public offering.

The company, an operating subsidiary of Mulberry Health Inc., said the size and price range for the proposed offering have not yet been determined. The IPO will begin once the SEC completes its revenue process, subject to market and other conditions, the company said.

Oscar filed the draft registration statement on Form S-10 to the Securities and Exchange Commission under its parent company, Mulberry. SEC filings show Mulberry is backed by Thrive Capital, a well-funded investment firm co-founded by Joshua Kushner. He’s the brother of Jared Kushner, President Trump’s son-in-law and adviser.

Startups like Oscar are allowed to file such statements confidentially under the Jumpstart Our Business Startups Act, or JOBS Act, which was enacted in 2012.

The news comes less than a week after Oscar announced it had closed a $140 million funding round led by Tiger Global Management. Oscar said the financing comes as the company continues to experience growth, including a 74% increase in direct policy premiums over the past three years.

“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,” Oscar CEO Mario Schlosser said in a statement.

In 2021, Oscar said its reach will extend to 18 states and 286 counties. The company offers individual plans, family plans, Medicare Advantage and small group plans. As of Sept. 30, it had about 420,000 members across 15 states.

Oscar touts its digital engagement with members as one of the big differentiators between itself and larger health insurers. The company expanded on that in a big way over the summer when it announced that beginning in 2021, some of its individual and family plan members will be able to receive all primary care services virtually.

Source: modernhealthcare.com

Tags: covid-19, pandemic

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