THE MARKET FOR HEALTH INSURANCE PLANS IS COMPETITIVE.

Associated Press/ Nati Harnik

Aside from massive funding rounds, among all four startups, there’s one unifying factor: They all offer or plan to offer Medicare Advantage plans.

Both Oscar and Bright also have a presence on the individual exchanges set up by the Affordable Care Act. For 2019, 11.4 million people signed up for a plan on the exchanges nationally.

The market for Medicare Advantage plans his competitive. About a third of people on Medicare are enrolled in private Medicare Advantage health plans. People can typically choose to enroll in Traditional Medicare or Medicare Advantage plans when they turn 65. Either way, their health needs are largely funded by the US government.

As of last year, more than 20 million Americans were enrolled in Medicare Advantage plans. It’s a growing market that insurers from startups — including these four — are interested in getting a piece of, alongside entrenched rivals like Humana, UnitedHealth Group, and CVS Health are in.

It remains to be seen how sizeable of a presence these newer entrants can amass through expansions within existing states and how key geographic expansions will be to their strategies as well.

http://www.rapid-evolution.com/2019/06/03/health-insurance-startups-like-bright-and-oscar-have-raked-in-3-billion-in-venture-funding-theyre-using-that-war-chest-to-plot-out-massive-expansions-across-the-us/