Oscar Health Loss Hits $197 Million Despite Record Obamacare Growth

Oscar Well being reported a quarterly lack of practically $198 million as the corporate invests extra to develop its medical health insurance companies that embody Obamacare.

Oscar, which already issued 2022 steering lower than a month in the past forecasting report development and $6 billion in income for 2022, on Thursday said health plan membership was up by about 50% to 598,169 on the finish of 2021 in comparison with 402,000 in 2020. The majority of Oscar’s membership is particular person and small group protection.

Oscar, recognized for offering particular person protection referred to as Obamacare beneath the Inexpensive Care Act, on Thursday reported a loss of $197.7 million in the fourth quarter of final yr in comparison with a lack of $189.9 million within the year-ago interval.

Oscar’s fourth quarter income greater than doubled to $496 million in comparison with $158 million within the fourth quarter of final yr on the expansion in well being plan members and premium income. However Oscar’s whole bills additionally greater than doubled to $692 million within the fourth quarter from $344 million within the fourth quarter of 2020.  

The losses have been largely anticipated given investments the corporate has made to develop its operations. The corporate nonetheless, nonetheless, attracts traders and companions.

Lately, Oscar has expanded into greater than 20 states to promote particular person protection whereas increasing into sure markets to promote Medicare Benefit plans to seniors.

Oscar additionally has a partnership with Cigna to promote protection to small companies that expanded for this yr. That enterprise had 16,506 well being plan members as of the tip of 2021, its first yr of operation.

Oscar has stated the corporate’s insurance coverage enterprise is concentrating on 2023 for profitability and the corporate’s high government reiterated that Thursday afternoon. “As we meaningfully improve scale within the enterprise, we preserve a disciplined give attention to effectivity and we consider we stay effectively positioned on our path to profitability for our insurance coverage enterprise in 2023,” Oscar chief government and co-founder Mario Schlosser stated in an announcement accompanying the earnings report.