Oscar Health stock surges 7.1% after announcing partnership with Hy-Vee to launch new health insurance plan.

Oscar Health (OSCR) shares rose 7.1% after announcing a partnership with grocery chain Hy-Vee to launch a new employer health insurance plan. The partnership is expected to expand Oscar's customer base and strengthen its competitive position. The broader health insurance sector received a boost after news that prominent investors had taken a new stake in industry giant UnitedHealth.

Oscar Health (OSCR) shares rose 7.1% after announcing a partnership with grocery chain Hy-Vee to launch a new employer health insurance plan. The healthcare technology company is partnering with Hy-Vee to introduce "Hy-Vee Health with Oscar," an Individual Coverage Health Reimbursement Arrangement (ICHRA) plan. This new initiative is expected to expand Oscar's customer base and strengthen its competitive position in the health insurance sector [1].

The partnership involves providing Hy-Vee employees in the Des Moines area with a set amount of money each month to purchase their own health insurance through the federal exchange created under the Affordable Care Act or through an ICHRA enrollment website such as BenefitBay. The plan, which is set to launch on November 1, 2025, for coverage effective January 1, 2026, includes no-cost direct primary care services, 24/7 urgent and virtual care, and lab tests [1].

This new kind of plan is an alternative to offering traditional group health plans to employees. It allows employers to provide defined non-taxed reimbursements to employees for qualified medical expenses, including monthly premiums and out-of-pocket costs like copayments and deductibles [1].

The broader health insurance sector received a boost after news that prominent investors had taken a new stake in industry giant UnitedHealth. Shares of UnitedHealth Group (UNH.N) surged more than 11% in premarket trading on August 15, 2025, after billionaire Warren Buffett's Berkshire Hathaway (BRKa.N) invested in the company. This investment boosted investor confidence in UnitedHealth, which has faced multiple challenges, including rising costs, a federal investigation, and a cyberattack [2].

The investment from Berkshire Hathaway, along with purchases from several other prominent hedge funds, signifies a vote of confidence in UnitedHealth's long-term value. However, the company still faces elevated uncertainty and needs to regain trust and credibility with investors [2].

References:
[1] https://www.forbes.com/sites/brucejapsen/2025/08/14/hy-vee-grocer-and-oscar-health-launch-employer-health-plan/
[2] https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-jumps-after-vote-confidence-warren-buffett-2025-08-15/