Oscar Health is teaming up with grocery chain Hy-Vee to offer a new employer health benefits plan in Des Moines, Iowa.
If approved by regulators, the partnership will use an Individual Coverage Health Reimbursement Arrangement (ICHRA) model, which allows employers to fund their employees’ individual market premiums instead of offering traditional group plans. The new plan, Hy-Vee Health with Oscar, will be available through the individual marketplace for 2026 coverage.
“We’ve been serving the Des Moines market for a number of years, and we share the same goal with Hy-Vee: how do we do things differently to meet the healthcare needs of people where they live and how they access care? That desire for innovation is really the sweet spot for this partnership,” Geoffrey Bartsh, Oscar’s senior vice president of markets, told Becker’s.
The new plan would provide employees with access to no-cost visits at Hy-Vee Health Exemplar Care clinics, which offer primary and urgent care, lab tests, x-rays and certain medications. The plan also includes access to MercyOne specialists, discounted prescriptions at Hy-Vee pharmacies, and Oscar’s care coordination services.
“ICHRA, as a model, is an opportunity for both small and large groups that are struggling with benefits and costs,” Mr. Bartsh said. “It’s also an option for employers who currently don’t offer benefits, and it’s especially appealing to those who offer benefits but see low participation due to cost.”
“Overall, this model is creating a better mechanism for employers, and we believe the ICHRA marketplace will provide benefits that employees actually want and can use,” he added. “Hy-Vee is already expanding their Exemplar Care Clinics in their grocery stores, and we’re in discussions to grow with them as they bring this care model to other markets.”
Hy-Vee operates more than 270 pharmacies and nearly 300 grocery stores across the Midwest.
