Cigna and Oscar Health are expanding their health insurance plans for small businesses into two new markets for next year.
Oscar, perhaps best known for selling individual coverage known as Obamacare under the Affordable Care Act, has been working to expand its offerings in an increasing number of U.S. individual and small group markets. Cigna, which owns the pharmacy benefit manager Express Scripts, has a big business administering coverage for large self-insured employers and is also packaging an array of medical, pharmacy and behavioral health benefits for employers large and small.
After less than two years, the Cigna + Oscar small business health insurance effort is in six states with plans to launch small business health insurance in Illinois’ counties in the Chicago area as well as Missouri.
Currently, Cigna+Oscar sells small group health products statewide in Georgia, Tennessee, Connecticut, Arizona and more than a half dozen of California’s largest markets. In October, Cigna+Oscar products will be sold in Kansas City.
The two companies said they already have more than 900 small business owner clients representing more than 8,500 customers in the market where they currently sell Cigna + Oscar coverage
Both Cigna and Oscar have grown their individual business under the ACA to unprecedented enrollment this year thanks in part to a special enrollment period the Biden administration opened for Americans who have lost health benefits during the Covid-19 pandemic.
Cigna and Oscar say their plans for small business are priced attractively for employers hit hard by Covid-19 and related fallout surrounding the pandemic.
“Small businesses have had to make extremely difficult decisions since the beginning of the pandemic and continue to face an uphill battle with the ongoing threat of the Covid-19 variants,” said Louis DeStefano, head of the small group business and senior vice president of growth at Oscar. “Cigna + Oscar is designed to help these small businesses provide high-quality care to their employees at an affordable cost that allows them to continue operating.”