Grocer Hy-Vee And Insurer Oscar Launch Employer Health Plan

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/ [email protected] (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 launching a new health insurance plan in the Des Moines area that they plan to take to multiple states and businesses.

The new health insurance plan, “Hy-Vee Health with Oscar,” is part of a coming wave of health benefit offerings known as individual coverage health reimbursement arrangements, or ICHRAs. Such plans involve employers paying their workers a set amount each month to purchase health insurance on their own via a carrier, broker or government exchange.

In this case, employers and employees can purchase the Hy-Vee/Oscar plan via the federal exchange created under the Affordable Care Act or through their employer or an ICHRA enrollment website such as BenefitBay.

“Finding the right healthcare coverage should be as easy as buying milk at Hy-Vee,” Oscar chief executive officer Mark Bertolini said of the popular grocery store chain, which has hundreds of pharmacies, in-store health and nutrition services in a nine-state region.

Oscar is perhaps best known as one of the nation’s providers of individual coverage under the ACA known as Obamacare, but is making a big bet along with rivals including Centene, Cigna and others selling ICHRA plans as well.

The Hy-Vee/Oscar plan is available to 400,000 Hy-Vee employees in greater Des Moines through their employer on the individual marketplace starting Nov. 1, 2025, the start of open enrollment for individual plans under the ACA also known as Obamacare, for coverage effective Jan. 1, 2026.

The relationship between Oscar and Hy-Vee includes “$0 care at Hy-Vee Health Exemplar Care clinics,” the companies said. “No-cost direct primary care from the same doctor at each visit, 24/7 urgent and virtual care, lab tests, medications, and more. This service normally retails for $2,400 for a family of four per year.”

This new kind of a plan is an alternative to offering a traditional group health plan to employees. “It’s a specific account-based health plan that 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,” the federal government says on its healthcare.gov website.

“We are shaping the future of healthcare for consumers and employers,” Bertolini said. “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.”

Eventually, Hy-Vee and Oscar will offer the plan to more businesses and their employees beyond the grocery and pharmacy chain and beyond the greater Des Moines area to the entire state of Iowa followed by the eight other states where Hy-Vee has locations and workers. Those states are: Illinois, Kansas, Kentucky, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.

“Hy-Vee has a history of making lives easier, healthier, and happier,” Hy-Vee President Aaron Wiese said. “We are taking that commitment to the next level with Oscar. Together our teams are making healthcare work for every person, lifestyle, and budget. We are proud to offer affordable benefits to the Des Moines business community, with plans to expand in Iowa and other states over time.”