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- Oscar Health loses Florida-based health insurer Health First Shared Services as a customer of information technology platform +Oscar.
- The decision to terminate Health First, Oscar’s first full-service technology contract, will cost InsurTech up to $60 million in revenue this year, Oscar said in a filing with the SEC on Tuesday. Oscar said he did not expect the contract loss to affect 2022 earnings.
- Under the agreement, signed last year, Oscar was intended to provide administrative functions and services to insurance companies, as well as provide Oscar and its members access to Oscar’s technology platform. But he said in August that Oscar was struggling to implement the deal due to its complexity and scale, prompting the insurtech to suspend new full-service contracts for the next 18 months. rice field.
The +Oscar technology platform aims to help healthcare organizations transition to a risk-based payment model, increase patient engagement and control healthcare costs. New York-based Oscar has maintained its platform as a success, saying it has reduced emergency room visits by 13%, reduced no-shows by 20%, and increased annual wellness visits by 15%. I’m here.
However, insurtechs struggle to execute large-scale deals for their platforms.
The Health First partnership, which provides payers Medicare Advantage and individual members access to the platform, was set to launch in early 2022.
However, Oscar CEO Mario Schlosser told investors in August that the deal faced post-launch challenges due to the “complexity of a comprehensive integration at this scale.” rice field.
As a result, Oscar has decided not to seek new deals, but payers continue to negotiate with potential new customers due to demand from hospitals and payers, said CFO Scott Blackley. told investors by phone.
Historically, Oscar has aimed to sign one to two new +Oscar contracts each year.
In Tuesday’s filing, Oscar said it is committed to growing the +Oscar business and continuing to serve its current customers. The company declined to share the number of existing clients using +Oscar, but marquee clients include Cigna, with whom Oscar works with small group services, and Medicare Advantage plan, with which Oscar works. said it included Holy Cross Health and Memorial Healthcare System. in South Florida.
Despite the struggles facing full-service technology deals, Oscar is developing and marketing a +Oscar platform called Campaign Builder that will help plan and provider manage risk, the company said. rice field.
+Oscar will provide services to Health First until at least the end of December, at which time Health First plans to bring these services in-house. Health First did not respond to requests for comment by the time of publication of this article.