Oscar Health Tuesday reported a $177 million first quarter profit, which was a first since the ... [+]
Oscar Health Tuesday reported a $177 million first quarter profit — a first since the company was founded more than a decade ago — as the provider of individual coverage under the Affordable Care Act lives up to promises under new management.
Oscar, which shook up its management ranks and hired the former Aetna chief executive Mark Bertolini last year, reported a first quarter profit of $177.4 million, or 62 cents a share, compared to a loss of $39.8 million, or 18 cents in the first quarter of 2023.
Founded in 2012, Oscar had yet to turn a profit, but executives have said that will change this year as they remain bullish on the individual health insurance market. The first quarter net income attributable to Oscar “significantly improved by $217.1 million year over year,” the company said in the press release announcing first quarter earnings.
Total health plan membership was up more than 40% to 1.44 million compared to 1.02 million in the year-ago quarter. “Total revenue was $2.1 billion in the quarter, up 46% year-over-year, driven primarily by higher membership, rate increases, and lower risk adjustment as a percentage of premiums,” the company said.
In addition, Oscar’s medical loss ratio, a key measure of a health insurer’s ability to manage costs, also improved.
“Oscar reported strong first quarter results, showing year-over-year improvement across all core metrics and achieving positive net income,” Bertolini said. “Our performance lays a solid foundation for 2024, and gives us a clear line of sight into total company adjusted EBITDA profitability this year.”
