Alphabet Commits $375M to Health Tech Innovator Oscar
Tech giant Alphabet boosts investment in Oscar Health, an insurance startup co-founded by Joshua Kushner, aiming to revolutionize healthcare insurance.
Global technology leader Alphabet Inc. (GOOGL) is deepening its involvement in the healthcare sector by significantly increasing its stake in Oscar Health, an innovative insurance startup co-founded by Joshua Kushner, brother to Jared Kushner, former senior White House advisor and son-in-law to Donald Trump.
Alphabet, Google's parent company, has invested a substantial $375 million into Oscar Health, a company established six years ago. This follows recent participation by Alphabet subsidiaries—venture capital arm Capital G and life sciences division Verily—in a $165 million funding round, as reported by CNBC. The latest funding round values Oscar Health at approximately $3.2 billion.
According to Wired, Alphabet now holds close to a 10% ownership in Oscar Health, a startup dedicated to transforming the insurance landscape through cutting-edge technology that streamlines claims management. Oscar’s platform integrates advanced IT solutions, strategic provider collaborations, and a member-focused experience to deliver transparent pricing for patients and flexible payment options for healthcare providers. With this new capital, Oscar aims to expand its reach into additional cities and enhance its technological infrastructure, while accelerating the rollout of its Medicare Advantage product, scheduled for launch in 2020.
Expanding Horizons: Alphabet Targets Emerging Healthcare Markets
Oscar Health gained recognition for its role in the individual insurance market under the Affordable Care Act and plans to enter six new markets in the coming year. As part of this strategic growth, former YouTube CEO Salar Kamangar will join Oscar’s board of directors, bringing valuable leadership experience.
"We have completely reengineered how we internally manage healthcare through technology, enabling us to move faster and innovate more effectively," Oscar CEO Mario Schlosser told Wired in a recent interview.
Alphabet’s stock, trading at $1,228.39 with a 2.4% dip on Wednesday morning, has nevertheless surged 16.6% year-to-date, outperforming the S&P 500’s 5% gain over the same period.
In its latest quarterly results, Google exceeded analyst expectations, bolstering confidence in its diversified growth areas beyond advertising, such as YouTube, Maps, machine learning, hardware, and the Google Play Store. See also: 7 Reasons Why Alphabet Will Dominate.
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