Clover Health on Oscar Considering Medicare Advantage Market
On August 14, Oscar announced a $375m financing round by Alphabet that will allow the hippie health tech company to expand beyond the individual healthcare exchanges and small employer market, and into the Medicare Advantage market, caring for people 65 and older. Aka the space of Clover Health .
Here’s the statement made by the cofounder and CEO of Clover Health, Vivek Garipalli:
“We welcome Oscar Health to the Medicare Advantage space. The increased competition to deliver better healthcare options is excellent news for America’s seniors.
“As we’ve discovered after several years serving customers in this market, providing Medicare beneficiaries with high-quality, compassionate and innovative care is an incredibly effective way to improve their health outcomes. Medicare is the area of healthcare where the biggest clinical impact can be made through proper care management, since 93% of costs are driven by complications from chronic conditions.
“Not only does medicare Advantage provide an unrivaled opportunity to help American seniors live happier, healthier, longer lives, it is also a thriving market in which to run a successful business. Medicare Advantage is already a $200 billion industry, with more than a third of all Medicare beneficiaries – 20 million people – enrolled in an Advantage plan. Those numbers will continue to grow significantly since half of all Baby Boomers turning 65 choose an Advantage plan when they enroll in Medicare for the first time.
