Dive Brief:
- New York-based Oscar Health Insurance, a newcomer of two years, is seeing enrollment skyrocket from 40,000 people to more than 100,000 in eight months thanks to a head-turning ad campaign and mobile app that focus on the message of simplicty, the New York Post reports.
- A significant chunk of the growth has taken place in recent weeks as individuals raced to apply for 2016 coverage during the ACA open enrollment period.
- Oscar’s New York membership doubled in the past six weeks alone, CEO Mario Schlosser told the Post.
Dive Insight:
Oscar is known for its cartoon ads on the New York subway, though the company adds about 30% of its new customers come from referrals by family, friends and physcians, though there are no perks for referrals.
The fledgling company's goal is to enroll 1 million customers within five years. Enrollment is its strong suit, as well as attracting funding; it reportedly raised $32.5 million from Google Capital this fall, and raised $145 million this spring in a round led by Founders Fund, and previously raised $150 million, the Post reports.
However, Oscar is reported to have lost $41.5 million during the first three quarters of 2015 despite doubling its revenue and its New York membership, and lost $27.5 million in 2014.
The company has previously predicted profitability by late 2016 and is working to expand into California and Texas.