Oscar raised new money from Alphabet, the parent of Google. Photo: Oscar

Google's parent company, Alphabet, is investing $375 million in health insurance startup Oscar just months after Oscar raised a separate $165 million cash injection. The new round leaves Oscar at a rough $3 billion valuation, per Wired.

The big picture: Oscar will use the money on technology and to expand into Medicare Advantage, which the company previewed with a job posting last year. But entering a new line of health insurance likely means losses will continue for the foreseeable future.

By the numbers: Oscar sells health plans in the Affordable Care Act marketplaces (for people who don't get insurance through a job) and for small employers. So far, the company has lost a lot of money:

  • Net losses of $127 million in 2017 and $205 million in 2016.
  • Revenue of $229 million in 2017 and $426 million in 2016.

Yes, but: Oscar is also relatively young and expects to lose money in the early years. However, due to state capital requirements, health insurers have to have enough cash on hand to cover expected medical claims, so Oscar can't continue to bleed money.

The intrigue: Oscar entering Medicare Advantage in 2020. It's the profitable, growing, privatized version of traditional Medicare. It also has closed, narrow networks of hospitals and doctors instead of traditional Medicare's open network.

  • But it'd take a while for Oscar to make any money here, according to actuarial experts. Oscar has to build the infrastructure needed to get Medicare Advantage star bonuses, and risk adjustment in Medicare Advantage is a completely separate beast from the ACA's risk adjustment.

Go deeper

Natural gas pipeline project cancelled after Supreme Court victory

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Dominion Energy announced Sunday it has agreed to sell its natural gas transmission and storage network to Warren Buffett's Berkshire Hathaway in a deal valued at $10 billion, including the assumption of debt.

Why it matters: The deal comes as Duke Energy Corp. and Dominion Energy announced they are canceling their plans for the $8 billion Atlantic Coast Pipeline following a Supreme Court ruling. The ruling removed major hurdles for the companies, but "recent developments have created an unacceptable layer of uncertainty and anticipated" for the project.

Trump campaign "strongly" encourages face masks at outdoor rally

Photo: Jabin Botsford/The Washington Post via Getty Images

The Trump campaign will be providing face masks and hand sanitizer for all attendees at an upcoming rally Saturday in Portsmouth, New Hampshire.

  • The campaign said in an email on Sunday that attendees are "strongly encouraged" to wear the masks.

Why it matters: The campaign's first coronavirus-era rally in Tulsa, Oklahoma, was notable for its lack of masks.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 11,317,637 — Total deaths: 531,729 — Total recoveries — 6,111,910Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 2,852,807 — Total deaths: 129,718 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity — Houston mayor warns about hospitals
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Former Trump official Tom Bossert says face masks “are not enough”
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: Sports return stalked by coronavirus
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.