In Dallas, Schlosser said Oscar faced an unpredictable insurance market, with several large carriers pulling out and the state’s Blue Cross and Blue Shield insurer asking for big rate increases, along with climbing medical costs. The company said it’s quitting New Jersey mainly because its network of doctors, hospitals and other health providers isn’t a “narrow network” -- a relatively closed, but lower cost, group of providers that many in the industry see as a way to keep expenses down.
In the interview, Schlosser said the company’s new plans focus more on Oscar’s strengths, particularly narrow networks. Along with lower costs, using more narrow networks gives the company a larger role in coordinating the care of its customers, such as helping them pick doctors and using tools to keep track of their care. Oscar has said its also struck deals to share the cost of caring for patients with the health systems.
“We want to work with delivery system partners who understand us,” Schlosser said.
Sell to Companies
Next year in the second quarter it will start selling plans to smaller business, a product commonly known as small-group insurance. By the end of next year, Oscar wants to begin offering health plans for larger employers, Schlosser said.
While Oscar’s narrow networks could limit its appeal to the largest employers, Schlosser said the insurer hopes to convince companies to offer its health plans as one of several options.
Klein was chancellor of the New York city public school system when Michael Bloomberg was mayor. Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.
This article was provided by Bloomberg News.