Oscar Health Insurance is in talks to raise venture capital funding at a valuation of significantly more than $1 billion, according to people with knowledge of the matter.
The people, who asked not to be named because the deal hasn’t been publicly disclosed, declined to say exactly how much the startup was raising. In May 2014, New York-based Oscar completed an $80 million investment round.
Oscar, which is backed by venture investors Peter Thiel and Vinod Khosla, is trying to insert a dose of Silicon Valley thinking into the health-insurance industry. The startup sells coverage to individuals through insurance marketplaces in New York and New Jersey created by the Affordable Care Act, its website says.
Oscar’s insurance plans offer free basic care like doctor visits, phone calls with doctors, preventative care and generic drugs. The insurance company was co-founded by venture capitalist Joshua Kushner; Kevin Nazemi, a former Microsoft executive; and Mario Schlosser, who is also chief executive officer.
“We understand technology, data and design,” Kushner said in an interview in 2013.
The company declined to comment on the talks with venture capital firms. Oscar has already raised $150 million from investors like Khosla Ventures, General Catalyst Partners, Founders Fund and Kushner’s Thrive Capital.