Hy-Vee Health and Oscar Health Join Forces to Launch Affordable, Concierge-Style Employer Healthcare in Des Moines
Oscar Health, a technology-driven health insurance leader, and Hy-Vee, Inc., the Midwest’s most beloved grocery store chain, have announced a groundbreaking partnership aimed at reshaping employer-sponsored healthcare. The two companies are debuting “Hy-Vee Health with Oscar” — an innovative health insurance benefit that promises to save employers money while delivering employees high-quality, concierge-style care at an affordable, fixed price.
The new offering merges the strengths of both organizations: Hy-Vee’s extensive retail footprint and healthcare services, and Oscar’s award-winning insurance platform and technology solutions. Together, they aim to redefine what employer healthcare can look like — simple, accessible, and personalized.
A Partnership Between Two Industry Leaders
The collaboration brings together two major players in their respective industries.
- Hy-Vee operates more than 270 retail pharmacies and nearly 300 grocery stores throughout the Midwest. In addition to retail operations, the company co-owns Hy-Vee Health Exemplar Care, which offers concierge-style primary and urgent care.
- Oscar Health is recognized as a pioneer in tech-enabled health insurance solutions. The company is known for its user-friendly digital tools, personalized care coordination, and strong consumer satisfaction scores, particularly in the individual health insurance market.
By combining Hy-Vee’s physical healthcare infrastructure and consumer reach with Oscar’s technology and insurance expertise, the partnership aims to deliver a streamlined healthcare experience for employees while offering cost savings for employers.
Making Healthcare as Easy as Grocery Shopping
Mark Bertolini, CEO of Oscar Health, emphasized the vision behind the partnership:
Finding the right healthcare coverage should be as easy as buying milk at Hy-Vee. We are shaping the future of healthcare for consumers and employers. Everyone deserves healthcare that is affordable, convenient, and simple. Our partnership reflects the innovation we are driving in the individual market to exceed expectations across the country.
Bertolini’s statement underscores a core goal: demystifying healthcare. By simplifying plan design, offering clear pricing, and integrating care into places people already visit — like their local grocery store — Hy-Vee Health with Oscar hopes to remove many of the barriers that typically frustrate both employers and employees.
Initial Rollout in Des Moines
The new plan will debut in Des Moines, Iowa, where Oscar already has a strong presence and enjoys high member satisfaction ratings. The region’s familiarity with both brands provides fertile ground for the launch.
The plan will be offered starting November 1, 2025, for coverage effective January 1, 2026. Employers can provide this benefit through the individual marketplace by using an Individual Coverage Health Reimbursement Arrangement (ICHRA) model — a flexible employer-sponsored coverage option that allows workers to select individual plans reimbursed by their employer.
Cost Savings for Employers and Employees
One of the major selling points of Hy-Vee Health with Oscar is its cost efficiency. According to industry data cited by the companies:
- Employers using an ICHRA model can save between 20% and 30% on healthcare costs.
- Employees may save $500 to $1,000 per year on premiums and related healthcare expenses.
These savings are particularly attractive for small and mid-sized businesses that want to offer competitive benefits without the heavy financial burden of traditional group health insurance plans.
Expanding Beyond Des Moines
While the partnership is launching in Des Moines, the companies have ambitions to bring the plan to additional markets over time. If the model proves successful, it could serve as a blueprint for blending retail-based healthcare access with advanced insurance technology in multiple regions.
Aaron Wiese, President of Hy-Vee, said the collaboration aligns perfectly with the company’s mission:
Our mission at Hy-Vee is making lives easier, healthier, and happier – and we are taking that commitment to the next level through our partnership with Oscar. Together, our teams are bringing a healthcare solution to the greater Des Moines community that meets the needs of every lifestyle and budget.
What the Plan Includes
Employees who enroll in Hy-Vee Health with Oscar will gain access to a comprehensive package of healthcare services and related perks designed to cover both medical needs and everyday living expenses.
1. $0 Primary and Urgent Care at Hy-Vee Health Exemplar Care Clinics
- Unlimited access to primary care, 24/7 urgent care, labs, x-rays, select medications, and more — all at no cost to the patient.
- This benefit alone represents a substantial savings, as similar services can cost a family of four up to $2,400 annually when purchased separately.
2. Access to Top-Rated Specialists
- Members will have direct access to leading specialists at MercyOne, one of the region’s most respected healthcare systems.
- This ensures continuity of care for complex or chronic conditions without sacrificing convenience.
3. Affordable Medications
- Prescription drugs will be available at discounted rates through Hy-Vee pharmacies.
- Employees can pick up their medications while shopping for groceries, reducing the number of trips needed for essential tasks.
4. One-on-One Support
- Each member will have access to Oscar Care Guides — dedicated support professionals who can assist with finding the right doctor, understanding benefits, booking appointments, and navigating the insurance process.
- This personal guidance reduces administrative stress and helps members get timely care.
5. Grocery and Wellness Rewards
- Participants can earn Hy-Vee rewards for everyday grocery savings, nutritional counseling, and in-store health support services.
- This integration of nutrition and healthcare underscores the program’s holistic approach to wellness.
Why This Matters in the Broader Healthcare Landscape
The launch of Hy-Vee Health with Oscar comes at a time when employers are increasingly seeking alternative ways to provide health benefits amid rising costs. Traditional group insurance plans often leave smaller businesses priced out, while employees are burdened by high deductibles and out-of-pocket expenses.
The ICHRA model offers flexibility by allowing employers to set a fixed contribution toward healthcare while enabling employees to choose a plan that best fits their needs. By pairing this financial model with a built-in network of retail-based clinics, pharmacies, and grocery rewards, Hy-Vee and Oscar are offering something that goes beyond traditional insurance — they are offering a lifestyle benefit.
