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February 23, 2016 at 08:31 AM
Oscar Health Insurance Corp. was valued at $2.7 billion in the startup’s latest round of funding, according to a person familiar with the matter.
That’s about $1 billion more than when the health insurer raised funds in September. In the latest round, the company said it took in $400 million from backers led by Fidelity Investments.
See also: Health startup Oscar shifts course to draw customers
Oscar sells health insurance in the markets created by the Patient Protection and Affordable Care Act (PPACA). The company, which has expanded into new cities, now has an enrollment of about 145,000 people compared with about 40,000 last year. Oscar Chief Executive Officer Mario Schlosser has said he wants to have 1 million customers in five years.
For 2016, Oscar expanded into the Los Angeles area, as well as Dallas and San Antonio. The company also offers coverage in New York and New Jersey near New York City. Forbes reported on Oscar’s valuation earlier Monday.
Investors are giving Oscar a valuation of about $18,600 per enrollee.
Oscar’s per-enrollee valuation appears to be much higher than the per-enrollee valuations of larger, established health insurers. Aetna Inc. (NYSE:AET) has agreed to pay $37 billion, or about $2,600 per major medical enrollee, for Humana Inc. (NYSE:HUM), and Anthem Inc. (NYSE:AET) has agreed to pay $54 billion, or about $3,600 per major medical enrollee, for Cigna Corp. (NYSE:CI).
