More than two dozen employees on Oscar Health’s New York-based member services team have been asked to follow their old position to Arizona, where it seems the insurer could have designs on offering a health plan in the near future.
Plans to Expand
In a recent statement, the company said the move to Tempe is part of a larger plan to “transition our customer experience into a new model.” Oscar also intends to build its presence and offerings on the West Coast, and this personnel shift will support that goal.
Oscar insurance products are not available in Arizona – yet. The company has consistently spoken about plans to expand to new areas, including right on the homepage of their website. The insurer will offer 2017 plans in parts of New York, Texas, and California.
With Oscar hiring approximately 200 workers for its new Tempe office, one Arizona tech blog suggested that health plan availability may soon follow. However, no specific plans have been announced by the company.
To make up for more than $92 million in losses last year, Oscar announced in June that their New York provider network would be cut in half. Members were also told premiums would rise by an average of about 16 percent for 2017.
On August 23, the company announced they would be exiting the ACA exchanges in New Jersey and the Dallas-Fort Worth area.
The region surrounding Tempe is known for its wealth of experienced customer service and health care workers, a factor that undoubtedly played a role in Oscar choosing the location. The Phoenix metropolitan area also boasts a low employee-turnover rate, which will better ensure consistency of service for Oscar’s members.
Only 13 open positions are listed for Oscar in the Phoenix area, which may indicate that a number of the New York employees will be relocating to maintain their positions.
Oscar’s website lists more than 40 open positions in the New York office, so the hipster start-up doesn’t look like it’s leaving the Big Apple anytime soon.