Oscar Health and the grocery and pharmacy chain Hy-Vee are launching a new health insurance plan in the Des Moines area that they plan to take to multiple states and businesses. In this photo is a Hy-Vee grocery store that opened in 2015 in Oakdale MN. ] Jerry Holt/ Jerry.Holt@Startribune.com (Photo By Jerry Holt/Star Tribune via Getty Images)
Star Tribune via Getty Images
Oscar Health and the grocery and pharmacy chain Hy-Vee are collaborating on a new health insurance plan in the Des Moines region, with intentions to expand to various states and businesses, as announced by the companies on Thursday.
The newly introduced health insurance plan, named “Hy-Vee Health with Oscar,” is part of a growing trend of health benefit offerings known as individual coverage health reimbursement arrangements (ICHRAs). These plans involve employers providing a fixed amount each month to their employees for the purchase of health insurance from carriers, brokers, or government exchanges.
Employers and employees can acquire the Hy-Vee/Oscar plan through the federal exchange established under the Affordable Care Act or via their employer or an ICHRA enrollment platform like BenefitBay.
“Finding the right healthcare coverage should be as easy as buying milk at Hy-Vee,” stated Oscar CEO Mark Bertolini, referring to the widespread grocery store chain with numerous pharmacies and health services across a nine-state region.
While Oscar is prominently known for offering individual coverage under the ACA, it is now venturing into ICHRA plans alongside competitors like Centene and Cigna.
The Hy-Vee/Oscar plan is accessible to 400,000 employees in greater Des Moines through their employer on the federal marketplace starting Nov. 1, coinciding with the open enrollment period for individual plans under the ACA, effective Jan. 1, 2026.
This partnership between Oscar and Hy-Vee includes “$0 care at Hy-Vee Health Exemplar Care clinics,” offering no-cost primary care, urgent care, virtual care, lab tests, medications, and more, a service valued at $2,400 annually for a family of four.
This innovative plan serves as an alternative to traditional group health plans, allowing employers to provide tax-free reimbursements to employees for qualified medical expenses, including premiums and out-of-pocket costs.
“We are reshaping the future of healthcare for consumers and employers,” Bertolini emphasized. “Our partnership exemplifies the innovation we are driving in the individual market to exceed expectations nationwide.”
Hy-Vee and Oscar plan to extend this offering to businesses beyond the grocery and pharmacy chain and outside the Des Moines area to encompass the entire state of Iowa and eventually expand to eight other states where Hy-Vee operates.
“Hy-Vee has a long-standing commitment to enhancing lives through health and wellness,” stated Hy-Vee President Aaron Wiese. “Together with Oscar, we are revolutionizing healthcare to cater to every individual, lifestyle, and budget. We are dedicated to providing cost-effective benefits to the Des Moines business community, with plans for further expansion in Iowa and other states.”
