Health insurers Cigna Corp. and Oscar Health are teaming up to provide insurance to small businesses.
The companies said Monday they will begin providing fully insured health benefits to small companies in select areas beginning in 2020 and will share risk equally under a reinsurance agreement. They plan to expand their partnership over time.
"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," Julie McCarter, vice president of product solutions at Cigna, said in a statement.
Details on the partnership are sparse. An Oscar spokeswoman said the companies will launch the plans in a handful of markets to start with but said they won't announce the specific markets until closer to launch. A Cigna spokeswoman also declined to disclose where the plans will be offered.
The insurance plans will include integrated medical, behavioral and pharmacy services and broad access to high-performing doctor and hospital networks, the companies said. Like in other Oscar plans, members will receive support from a concierge team to understand their benefits and find care. They will also have access to round-the-clock telemedicine at no cost and other digital tools to support their care.
"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," Joel Klein, chief policy and strategy officer at Oscar, said in the news release. "Cigna + Oscar will give these business owners and their employees consumer-centric health care coverage and physician networks that provide personalized care."
Oscar has previously partnered with other national insurers and large health systems to launch new insurance plans. In 2017, Oscar and Humana partnered to bring small business insurance to Nashville. More recently, Oscar launched a 2020 Medicare Advantage plan with Montefiore Health System in New York.
The Oscar spokeswoman said the insurer is entering 2020 with about 400,000 members and $2 billion in revenue. Cigna, meanwhile, has projected 2019 adjusted revenue of $138 billion. It reported 17 million members as of Sept. 30.
