Analysis of Oscar Health (OSCR)

By: Eli Levi  |  December 19, 2023

By Eli Levi

Oscar Health (OSCR: NYSE) 

Oscar Health, a health insurance provider founded in the wake of the ACA which went public in early 2021, prioritizes the long-term well-being of its policyholders, seamlessly integrating the benefits of modern technology into the traditional insurance landscape. With a user-friendly interface and application, they not only streamline the insurance experience but also empower individuals to make informed choices for their lasting health. 

Long Term Focus 

Oscar Health’s emphasis on the long-term well-being of patients and preventative healthcare is mutually beneficial to both Oscar and its policyholders while effectively eliminating many short-sighted and skewed incentives often found in typical insurance companies. Even though Oscar is not often the cheapest option, its long-term focus aligns with individuals seeking optimal health outcomes, making it a compelling choice when selecting an insurance plan. For Oscar, having healthier policyholders results in reduced claims expenses, ultimately enhancing Oscar’s profitability. Despite being a relatively new insurer, there are promising statistics validating Oscar’s thesis and value proposition to policyholders. 

  • 13% reduction in ER visits1 (the most expensive for the insurer) 
  • 15% increase in annual wellness visits1 


Oscar Health developed a mobile app to assist with engagement for their policyholders. A recent quote from a Forbes article captures Oscar’s focus on the health of the patient. “The Oscar app syncs with both Google Fit or Apple Health. Customers who meet their step goals can earn $1 per day up to $100 in Amazon gift cards over the course of a year.”2 Beyond this anecdotal example, some data below suggests that policyholders are more engaged with doctors and medical professionals. 

  • 47% monthly active users1 
  • 71% contact their care team1 

TAM Analysis 

In 2017, a Pew report identified about 28% of Americans, or around 93 million people, as “early adopters” of tech.3 This strongly favors an innovative product like Oscar, as people are accustomed to other frictionless technologies seamlessly integrating with other aspects of their lives. Oscar Health has an app and UI that is best-in-class among technology companies and nonexistent when compared to other insurers. Oscar only needs to capture 5% of this market, considering the average monthly healthcare payment, to generate over $16 billion in revenue. 

Figures can be found here.