Key Takeaways
- • Oxbridge Health, Inc. closed a $45 million Series B financing led by Eir Partners, with participation from Optum Ventures, bringing total investment in the company to $90 million including founder and early-investor capital.
- • The funding marks the start of full commercial operations for Oxbridge's Episode Advantage Health Plans, a self-funded employer coverage model priced by episode of care.
- • Oxbridge claims its plans cost employers 10% to 25% less than a comparable PPO or HMO plan with the same benefits, based on its analysis of 15 million risk-adjusted commercial episodes across four states.
- • Self-funded employers and brokers in Texas, New York, New Jersey and Connecticut can now request Oxbridge quotes for 2027 health benefits; four reinsurers provide stop-loss coverage on the plans.
- • Founder Steve Wiggins previously founded Oxford Health Plans and Remedy Partners, which the company cites as the basis for its team's experience.
Summary
Oxbridge Health, Inc., headquartered in Norwalk, Connecticut, announced that it has closed a $45 million Series B financing led by Eir Partners, a Miami-based private equity firm focused on health technology, with participation from Optum Ventures and a group of experienced healthcare leaders. The round brings total investment in the company to $90 million, including capital from its founders and early investors. The company said the financing marks the start of full commercial operations for its Episode Advantage Health Plans. Proceeds will be used to expand sales and service for employers and brokers, add geographic markets, and bring its Episode Advantage Inside offering to health plan partners.
The company states that it spent three years building the data systems, analytics and software needed to price, guarantee and administer healthcare by episode of care. Four reinsurers offer stop-loss coverage on Oxbridge plans, giving self-funded employers risk protection. Oxbridge says its analysis of 15 million risk-adjusted commercial episodes across four states found that costs for clinically similar patients vary several-fold within the same market, that higher-cost care groups do not consistently deliver better quality, and that most of the cost gap stems from the volume of care delivered, including care not clinically needed, rather than from unit prices.
Under the Episode Advantage Plans model, members receive guaranteed prices from local care groups before treatment for episodes such as knee replacement, cataract surgery or annual diabetes care. The employer sets a coverage allowance so members know in advance what the plan will pay and what they will owe. Members retain access to their existing doctors and hospitals. The company says the plans are designed to cost employers 10% to 25% less than a comparable PPO or HMO with the same benefits. Brett Carlson, Managing Partner of EIR Partners, described Oxbridge as the first company to address wide variance in episodic cost for treating the same patient.
Oxbridge also offers Episode Advantage Inside, which lets health plans and third-party administrators add its episode pricing and guaranteed-price capabilities to existing benefit plans. Self-funded employers, brokers and benefits consultants can request 2027 quotes through oxbridgehealth.com. The release notes that the company's offerings are currently available to self-funded employers in Texas, New York, New Jersey and Connecticut.
The company states that it spent three years building the data systems, analytics and software needed to price, guarantee and administer healthcare by episode of care. Four reinsurers offer stop-loss coverage on Oxbridge plans, giving self-funded employers risk protection. Oxbridge says its analysis of 15 million risk-adjusted commercial episodes across four states found that costs for clinically similar patients vary several-fold within the same market, that higher-cost care groups do not consistently deliver better quality, and that most of the cost gap stems from the volume of care delivered, including care not clinically needed, rather than from unit prices.
Under the Episode Advantage Plans model, members receive guaranteed prices from local care groups before treatment for episodes such as knee replacement, cataract surgery or annual diabetes care. The employer sets a coverage allowance so members know in advance what the plan will pay and what they will owe. Members retain access to their existing doctors and hospitals. The company says the plans are designed to cost employers 10% to 25% less than a comparable PPO or HMO with the same benefits. Brett Carlson, Managing Partner of EIR Partners, described Oxbridge as the first company to address wide variance in episodic cost for treating the same patient.
Oxbridge also offers Episode Advantage Inside, which lets health plans and third-party administrators add its episode pricing and guaranteed-price capabilities to existing benefit plans. Self-funded employers, brokers and benefits consultants can request 2027 quotes through oxbridgehealth.com. The release notes that the company's offerings are currently available to self-funded employers in Texas, New York, New Jersey and Connecticut.
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