google invests in health insurance
Google Capital, the Internet company’s growth-equity fund, has invested $32.5 million in Oscar Health Insurance Corp. Oscar signs up customers through online exchanges that were created by the 2010 Affordable Care Act. Oscar is focused on signing up individuals, rather than employers. The average customer pays $5,000 per year.
David Lawee, the head of Google Capital, said Oscar stood out among other healthcare startups he considered investing in because it has the potential to help lower hospital bills and other costs for consumers.
“What we’re most excited about is companies that can transform the cost curve through technology,” Mr. Lawee said. “Oscar is very well positioned to do that.”
Oscar is Google Capital’s first investment since Google’s announcement last month it would create a new umbrella company called Alphabet Inc