6 startups using tech and data to challenge the health insurance industry status quo

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Oscar

Two years after it burst onto the scene, Oscar Insurance has become one of the most recognizable healthcare startups, enjoying a flurry of media coverage.

The company, which started out offering plans in New York, largely targets young, tech-savvy customers. Oscar features a sleek, user-friendly and mobile-friendly website that includes a personalized search engine for members and allows members to track and manage their medical bills. The CEOs of Aetna and Anthem even cited Oscar as an example of successful new insurance market entrants in a recent congressional hearing about their impending merger.

In April 2015, the company announced it had raised $145 million, leaving it valued at $1.5 billion. This autumn, Oscar also will compete against big-name insurers on the California health exchange. And in September, the company got a significant boost when Google Capital invested $32.5 billion in it, raising its value to $1.75 billion.

But the company has had its struggles, too. High administrative costs and low enrollment led the insurer to lose $37 million last year. And Oscar still must build relationships with brokers in order to expand its provider network if it wants to sell plans to employers--not just on the individual market.