A groundbreaking partnership between grocer Hy-Vee and tech-driven insurer Oscar Health promises to slash employer healthcare costs by up to 30%.

Story Highlights

• Hy-Vee and Oscar Health launch innovative employer health plan offering 20-30% cost savings
• Plan includes $0 primary and urgent care, discounted prescriptions, and grocery rewards
• Uses Individual Coverage Health Reimbursement Arrangement (ICHRA) model for maximum flexibility
• Enrollment opens November 1, 2025, with coverage starting January 1, 2026 in Des Moines

Private Sector Innovation Delivers Real Solutions

Oscar Health and Hy-Vee announced their groundbreaking employer health insurance partnership in August 2025, demonstrating how free-market innovation solves problems government programs cannot. The “Hy-Vee Health with Oscar” plan launches November 1, 2025, for Des Moines-area employers, with coverage beginning January 1, 2026. This private-sector solution targets approximately 400,000 eligible workers, offering genuine relief from healthcare cost burdens plaguing American families.

Grocer Hy-Vee And Insurer Oscar Launch Employer Health Plan via @forbes https://t.co/ADiyXFZXoM

— Bruce Japsen (@brucejapsen) August 14, 2025

Revolutionary Cost Savings Through Market Competition

The partnership promises 20-30% reduction in employer benefit costs while delivering superior care access. Employees receive $0 primary and urgent care visits, discounted prescription medications, and grocery rewards through Hy-Vee’s retail network. This market-driven approach proves private competition delivers better outcomes than government-controlled healthcare systems. The plan leverages Hy-Vee’s 270 pharmacies and nearly 300 stores alongside Oscar’s technology platform, creating unprecedented convenience for working families.

ICHRA Model Empowers Individual Choice

The plan utilizes Individual Coverage Health Reimbursement Arrangements (ICHRA), allowing employers to reimburse employees for individual market premiums instead of restrictive group plans. This approach maximizes worker flexibility and portability, core conservative principles supporting individual liberty over institutional control. Aaron Wiese, Hy-Vee’s President, emphasized making lives “easier, healthier, and happier” through accessible healthcare, while Oscar CEO Mark Bertolini noted finding healthcare coverage should be “as easy as buying milk at Hy-Vee.”

Disrupting Traditional Healthcare Monopolies

This first-of-its-kind collaboration between a major grocer and tech-focused insurer challenges entrenched healthcare monopolies that have failed American workers. The partnership includes MercyOne regional health system for specialist access, creating comprehensive care networks without bureaucratic interference. Industry analysts recognize this “landmark” move as genuine disruption, potentially spurring competitors to pursue similar innovations. Expansion to additional markets awaits successful implementation, proving scalable solutions emerge from entrepreneurial vision rather than government mandates.

Sources:

Hy-Vee Taps Oscar Health for Employer Healthcare Coverage
Hy-Vee teams with Oscar Health to launch fixed-price employer health plan in Iowa
Oscar partners with grocer Hy-Vee on joint health plan
Hy-Vee Partners on New Health Insurance Benefit for Employers
Oscar Health and Hy-Vee Announcement