- Though it has been losing money since its 2013 launch and only has about 40,000 members, Oscar Health Insurance is valued by investors at $1.5 billion.
- The venture lost $27.5 million in 2014 and $11.4 million in the first quarter of 2015. However, the company projects that it will be profitable by late 2016.
- In comparison, Cigna has more than 300 times Oscar's members, but based on its $54 billion purchase price by Anthem, is worth just 36 times more than Oscar, Crain's notes.
The stark difference between the company's current performance and perceived value is due to its technology and its future promise as a consumer-friendly industry disruptor, analysts say.
"As long as a company can show it's growing, losses aren't typically a deciding factor moving forward" in attracting investors, CB Insights analyst Matthew Wong told Crain's.
Oscar is maintaining backing thanks to its quick and bold entrances in New York, New Jersey and California, and its intent to sell plans in Texas during the next enrollment period beginning Nov. 1.
Its consumer following is attributed to its tech-focused features, such as a secure medical history presented like a social media feed. The plan also provides a doctor-on-call program that connects members with a physician by phone in less than an hour, and provides a Misfit fitness tracker to help members meet step goals worth up to $20 per month.