Tech companies looking to overhaul the health insurance industry have made much-hyped entries onto the public market. But they have yet to prove they can make money in the long run.
The stocks of two of the sector’s star companies — Oscar Health and Clover Health — have plummeted since their initial trades. They’re still racking up losses and the proportion of premiums they spend on medical claims outpaces that of lower-tech health insurance competitors, analysts tell STAT.
“There’s still a lot of investor skepticism, whether just the technology piece alone is sufficient,” Cowen analyst Gary Taylor told STAT.
This article is exclusive to STAT+ subscribers
Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+.
Already have an account? Log in
Already have an account? Log in
About the Author Reprints
To submit a correction request, please visit our Contact Us page.
STAT encourages you to share your voice. We welcome your commentary, criticism, and expertise on our subscriber-only platform, STAT+ Connect