“Small businesses are the backbone of the American economy, and through this partnership, we can take a disciplined approach to offering differentiated healthcare solutions that help small businesses save money, expand network and product choice, and keep employees healthy,” said Cigna VP of Product Solutions Julie McCarter, according to a press release.
“Cigna + Oscar,” as the partnership is branded, will “share risk equally under a reinsurance agreement” after the deal is approved by industry regulators. A 2020 rollout is now scheduled, with hopes for a successful market expansion in years to come.
“Integrated medical, behavioral and pharmacy services” will be provided, the companies said.
Primarily known for its involvement in Obamacare via the Affordable Care Act, Oscar is eager to continue growth within small group and individual markets. Cigna administers health plans for larger organizations. Through the technology platform, the companies’ merger will give customers “broad access to high-performing networks of doctors and hospitals,” they added.
“Together, we are giving small business owners an affordable, simple-to-use option that makes it easier for their employees to get appropriate care quickly, and stay healthy,” said Joel Klein, Oscar’s chief policy and strategy officer. “Cigna + Oscar will give these business owners and their employees consumer-centric healthcare coverage and physician networks that provide personalized care.”
Anticipating $2 billion in 2020 revenue across its diverse product lines, Oscar projects nearly 500,000 new members throughout the coming year. The “Cigna + Oscar” technology-driven merger is indicative of significant anticipation throughout the healthcare sector for wider payment structures, plus more robust medical treatment informed by 5G innovation.