Oscar Insurance Corp. has enrolled very few people in California. According to data from Covered California, only about 2,000 Californians chose a health plan from the New York-based insurer on the public exchange as of Feb. 7, which is approximately 0.1% of the 1.57 enrollees who renewed or chose a new plan.
The startup insurer heavily promoted itself through advertisements displayed throughout California during the open enrollment period.
Company spokeswoman Cat Cuppernull said that Oscar had about 5,000 members in California, including 3,000 people who purchased coverage through the exchange.
It is believed that Oscar was overshadowed by much larger and more established insurers, such as Kaiser Permanente and Anthem. The company also likely had difficulty adjusting its prices to remain competitive on the market.
The company only sold its 2016 plans in Los Angeles County and Orange County, with premiums much higher compared to other insurers in the exchange. Oscar did not participate in the state’s health exchange in 2014 and 2015.
“If history repeats itself, Oscar will be in the market a short period before they understand the concept of adverse selection,” said Health Insurance Brokers founder John Barrett.
Several other insurers, such as Molina Healthcare, Health Net, and L.A. Care Health Plan, have offered much more affordable silver plans than Oscar. Additionally, Oscar was dwarfed by Anthem and Blue Shield of California when it came to provider network size.
Despite lower-than-expected enrollment figures in California, Oscar is gaining traction in New York and New Jersey. The company also began offering its plans to consumers in Texas, but data regarding the state’s enrollments has yet to be disclosed.
