Complacency is one thing holding back the growth of the individual coverage health reimbursement arrangement, or ICHRA, market, according to Janet Liang, president of insurance at Oscar Health.
Oscar Health has laid out plans to double its membership by 2027. Growing the ICHRA market, which allows small employers to provide funds to their employees to purchase plans on the individual market, is a key part of the strategy.
ICHRA was introduced in 2019, and estimates put enrollment between 200,000 and 500,000. Customers tend to stick with what they know, she said.
“There’s a little bit of complacency in the industry,” she said. “We’re investing in education with brokers, education with state regulators, chambers and trade associations to really understand this option.”
There’s work to be done to make sure ICHRA is accessible and easy to use, Ms. Liang said. Oscar has invested in companies providing platforms for employers to offer ICHRA.
Ms. Liang told Becker’s that Oscar will be the “market maker” for ICHRA. The arrangement is a way to bring more individuals onto the exchange, and to keep members there, even if they leave their original employer.
Bringing more individuals into the market has been a key strategy for Oscar Health — the company estimates the exchange will have between 24 and 31 million enrollees by 2027.
“Not only is it good for small employers as an option and for employees to have choices, it will also help to strengthen the exchange itself by bringing in more lives with more continuity,” Ms. Liang said.
Ms. Liang began her role as president of Oscar Insurance in February. She was previously group president and COO of care delivery for Kaiser Foundation Health Plan and Hospitals. Oscar Health’s investment in technology drew her to the role, she said.
“We’re really interested in how technology can ease member experience, and we use it to help navigate care and create efficiencies within the system,” she said. “One of our advantages is that we’re able to apply AI, large language models for insights and incorporate that into our transactional systems and our digital app.”
She joins Oscar at a time of growth — the company reported its first-ever profitable year in 2024. Her goal during the first year on the job is to keep up this momentum, she said.
She also joins the company at a time of upheaval for the individual market. Increased tax subsidies have spurred record enrollment in the marketplace, but these subsidies will expire at the end of 2025 without congressional action.
Executives at Oscar and other insurers have said there is bipartisan support for extending the credits — and if these credits aren’t extended, the marketplace will stay afloat.
“There’s never been a period where we’re not navigating [uncertainty] in healthcare. This is a dynamic industry, with a lot of passionate public leaders at the federal and state level. Fortunately, I’ve seen lots of changes, and I think, overall, in the U.S., we’re on a good trajectory to address the uninsured in our communities,” Ms. Liang said.
