Bright Health just raised $500 million and Oscar Health is reportedly eyeing an IPO. Here’s a look at how the hot health insurance startups have fared this year.

Oscar Health raised additional capital as it works to expand into 4 new states in 2021 and is reportedly looking to go public.

Mario Headshot (3)

Oscar Health CEO Mario Schlosser
Oscar Health

Oscar Health sells coverage on the individual exchanges set up by the ACA and to small businesses. It’s in its first year of offering coverage to seniors through Medicare Advantage plans.

Oscar’s financials are affected by two reinsurance deals. Fifty percent of Oscar’s revenues now get passed along to Berkshire Hathaway, while the insurance giant Axa gets about half of the remaining revenue, the company said in 2019.

Accounting for that, a spokeswoman for the company told Business Insider the company brought in $331 million in net revenue through the first half of 2020. 

The company posted a net gain of $56 million in the first half of 2020, the spokeswoman said. 

It’s a significantly higher net gain than the company posted through the first half of 2019. 

In June, Oscar said it raised an additional $225 million from existing investors like Alphabet and General Catalyst as well as from new investors Baillie Gifford and Coatue. In total, the company has raised $1.5 billion. In September, Axios reported that Oscar has hired on bankers in preparation for a 2021 initial public offering. A spokeswoman for Oscar declined to comment on the report. 

It expects to bring in $2.2 billion in gross revenues for 2020 after a massive jump in membership. Through the first half of 2020, Oscar had about 420,000 members, including 1,727 people in its Medicare Advantage plans.

Going into 2021, Oscar plans to be in 19 states, up from 15 this year. Those are: New York, Texas, California, New Jersey, Ohio, Tennessee, Arizona, Michigan, Florida, Pennsylvania, Georgia, Colorado, Iowa, Arkansas, North Carolina, Oklahoma, Kansas, Virginia, and Missouri. 

Read more:Oscar Health opened a fancy new headquarters in lower Manhattan less than a year ago. Now the CEO is working from home and rethinking the future of his offices.

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