Health insurer Oscar adds another $140 million in what’s likely a pre-IPO round

Oscar, the New York-based health insurance upstart at the vanguard of a wave of venture capital healthcare investment made in the wake of the Affordable Care Act, has raised another $140 million in financing.

The new capital means that Oscar has raised what would be the equivalent of $1 million a day for the entirety of 2020.

The company’s last funding round, a $225 million haul, came just a few short months ago in June.

Given the list of investors in the round — which was led by Tiger Global Management and includes Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla Ventures, Lakestar and Reinvent — it’s likely going to be one of the last times the company taps private markets before an eventual public offering.

“Since 2017, Oscar has seen annualized membership growth of more than 70%,” said Mario Schlosser, co-founder and chief executive of Oscar, in a statement. “As we continue to rapidly scale our business, this capital will help us deliver on our commitment to bring accessible and affordable care to even more Oscar members across the country.”

Heading into the new year, the company said it will be available in 18 states and 286 counties across its Individual and Family Plans, Medicare Advantage and Small group products. As of September 30, 2020, Oscar had approximately 420,000 members across 15 states, the company said.

Oscar was one of the first insurers to offer virtual care services (launching the practice as early as 2014). Now nearly half of all Oscar member visits to a primary care practitioner are made with an Oscar-recommended doctor. Roughly 38% of the company’s subscribing members who have one or more medical visits use the company’s virtual care services, Oscar said.