Cigna, Oscar Team Up To Offer Health Aids To Small Businesses
Zacks Investment Research | Jan 13, 2020 09:41PM ET
Cigna Corporation (NYSE:CI) has entered into a collaboration with Oscar, a tech-driven health insurance company, to offer feasible commercial health solutions to small businesses.
Both companies reached a consensus to share risks in equal proportion under a reinsurance agreement for services delivered through this alliance. The partners will launch the solutions in specified markets during 2020 and gradually grow their partnership over time. However, the agreement is subject to closing conditions.
Services under the Cigna + Oscar brand catering to small group market include integrated medical, behavioral and pharmacy solutions, wide accessibility to doctors and hospitals, solid support from a dedicated concierge team, digital-first assistance that includes 24/7 telemedicine at zero cost, ID card availability, deductible tracking, etc.
Moreover, individuals would benefit from user-friendly search tools to review healthcare providers, get appointments as well as spot the leading broker, business and provider portals for helping them with convenient enrollment.
Rationale Behind the Move
In 2018, small businesses created more than 40% of total jobs, proving to be the backbone of American economy.
With this solution, Cigna expects to aid in cost management of small businesses besides extending network and product choice. This booming space with above 500,000 new companies starting out every month is a great market to tap into. Small group health plans cater to 15 million people in the United States today and this new service would provide entrepreneurs with an affordable, simple-to-use choice, which in turn, would keep their employees in good health.
This Cigna + Oscar initiative is another indicator of lending a significant boost to the healthcare sector for wider payment structures. This innovative alliance will further dispense more robust medical treatment.
Shares of this Zacks Rank #3 (Hold) company have gained 3.5% in a year's time, underperforming its Zacks Investment Research
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