Perhaps an unlikely partnership, Cigna and Oscar Health teamed as much as collectively launch small business health plans. On Tuesday, they named the first markets the place they plan to supply the brand new service.
The new plans, dubbed “Cigna + Oscar,” will likely be supplied in Atlanta, the San Francisco Bay Area, and throughout Tennessee. All of the plans are nonetheless pending regulatory approval, however the corporations hope to make them accessible within the fourth quarter.
Both Cigna and Oscar have been seeking to broaden their footprint for small group plans, which apply to companies with 100 workers or fewer. Oscar, a New York-based insurance coverage startup recognized for its tech-savvy strategy, might additionally profit from Cigna’s footprint. The startup initially started providing ACA market plans, however has since expanded to small group and Medicare Advantage plans.
The new plans will give members entry to Cigna’s community of suppliers and hospitals. They will even embody entry to 24/7 digital pressing care visits at no out-of-pocket value, and in some states, entry to Oscar’s $three prescription drug formulary.
Members will even have entry to Cigna’s behavioral health teaching packages and disaster helpline.
The health plans won’t cowl dental and imaginative and prescient companies for adults, although they may cowl pediatric companies. In an e-mail, Cigna confirmed that its subsidiary, Express Scripts would administer pharmacy advantages for the brand new plans.
The corporations haven’t but disclosed pricing. They will break up the danger equally via a reinsurance settlement.
Both Cigna and Oscar have indicated that they plan to broaden the partnership sooner or later. In gentle of the continued Covid-19 pandemic, they anticipate to see elevated curiosity from small companies.
“Small businesses are the lifeblood of the U.S. economy and have been significantly challenged by the COVID-19 pandemic,” Chelsea Cooper, senior vice chairman of small group business at Oscar, stated in a information launch. “Cigna + Oscar was created with the purpose of addressing small businesses’ unique challenges through solutions tailored to their budgets and care designed to prioritize their employees’ health needs.”