Trump's son in law's brother is the VC of a healthcare startup that reportedly is failing -- selling lesser insurance
https://www.forbes.com/sites/stevenb.../#1d677d84f240
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The actual running of the business has been harder than expected. It turns out that creating a slick user experience was the simple part. Building health networks, attracting customers and managing high patient costs was expensive. Oscar lost $120 million in 2015 and $205 million in 2016. But it is not alone in its struggle in the individual insurance exchanges. Giants like United Healthcare and Aetna have aggressively abandoned unprofitable regions. Oscar still has plenty of capital in the bank, but with a decline this year in enrollments, from 140,000 to 105,000 (after exiting risky markets), it clearly erred in terms of overall demand.
As with Obamacare itself, Kushner and Oscar have scaled back expectations. The company has pulled out of money-losing markets to focus on three metropolitan areas--New York, San Antonio and Los Angeles. While Oscar initially strove for the biggest health network possible, it now partners with hospital systems, sharing risk and aligning pricing incentives with the goal of driving down costs.
While the company says the failed Obamacare repeal is good news, the events of the past several weeks will not cure its ills. Oscar had already been urgently shifting toward a world without the Affordable Care Act and its individual mandate, launching an insurance product for small business--the hope is that its flashy tech will lead to big corporate deals (possible first targets: investors Google and Fidelity). ...
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