Mario Schlosser (Founder of Oscar Health)
Revolutionizing health insurance: How Oscar made care smarter, simpler, and more human.
Can health insurance be cool? Mario Schlosser thinks so.
Thank you, Mario, for sharing with New York Icons your experience building a company in one of the most archaic and complex sectors, health insurance. We discovered how Oscar Health leveraged technology, user-centric design, and resilience to disrupt the health insurance industry, transforming it into a more accessible and innovative space. We would also like to thank EffectiveSoft for sponsoring this dinner.
Q: Why did you start Oscar Health, and what makes it different?
Mario aimed to address the common frustration people feel toward health insurance companies. His goal was to build one people actually liked, with a user-first focus.
Oscar stood out by offering free telemedicine, user-friendly apps, and transparent pricing. These features made navigating health insurance easier and less intimidating for patients.
Timing was also key. The Affordable Care Act (ACA) created a new market for individual insurance, which Oscar leveraged to innovate in ways traditional insurers couldn’t.
Q: What challenges did Oscar face early on?
When regulatory instability caused most insurers to withdraw from the ACA market, Oscar stayed. The market shrank from 14 million people to 9 million, forcing Oscar to operate at a loss.
This decision was risky but strategic—it stabilized the market and established Oscar as a pioneering force.
By persevering, Oscar inspired a wave of health-tech insurance startups globally, from Brazil to France, proving that innovation could thrive even in a tightly regulated industry.
Q: What’s the biggest challenge in health insurance today?
Mario points to misaligned business models as a key obstacle. Patients don’t pay directly, and hospitals have little incentive to optimize costs. This creates inefficiencies, with wildly inconsistent pricing for the same procedures.
On the operational side, over 50% of claims are still processed manually, a glaring inefficiency in an otherwise tech-forward world. Mario believes automation could be a game-changer.
Incentives also play a role. The system currently rewards cost-shifting rather than value creation. Insurers and providers need to align more closely around patient outcomes.
Q: What innovative strategies helped Oscar succeed?
Free telemedicine was a bold move. Initially, actuaries feared it would be expensive, but it actually reduced costly ER visits, saving millions.
Regulations incentivizing chronic disease management allowed Oscar to focus on high-cost patients, like diabetics, providing better care while reducing expenses.
Oscar also prioritized user retention, achieving an 82% retention rate over 3–5 years. This is higher than traditional insurers, showing that Oscar’s approach resonates with its members.
Q: What advice does Mario have for healthcare entrepreneurs?
Be patient. Unlike other industries, healthcare is not a winner-takes-all market, and progress takes time.
Focus on building strong relationships with key stakeholders like providers and regulators. Success in healthcare depends on trust and effective storytelling.
Timing matters in fundraising. Mario suggests raising money strategically, ideally during periods of low interest rates and high valuations.
Key takeaway: Mario Schlosser and Oscar Health demonstrate that persistence and innovation can disrupt even the most complex industries. Their journey shows that change in healthcare is possible—if you align incentives, embrace technology, and put the user first
.