Oscar Health Bounces Back: Achieves First Quarter Profit and Boosts Membership under New Management
Oscar Health, the provider of individual coverage under the Affordable Care Act, reported a $177 million first quarter profit, marking the first time the company has been profitable since its inception over a decade ago. This achievement comes as the company fulfills promises made under new management.
Last year, Oscar Health brought in former Aetna chief executive Mark Bertolini to lead the company, resulting in a turnaround in their financial performance. Previously, Oscar Health had not been able to turn a profit since 2012. However, with a first quarter profit of $177.4 million, or 62 cents per share, the company has seen a significant improvement from previous losses. The first quarter net income attributable to Oscar rose by $217.1 million year over year, as stated in the press release announcing their earnings results.
Oscar Health’s total health plan membership increased by more than 40% from the year-ago quarter, totaling 1.44 million members. They reported total revenue of $2.1 billion in the first quarter, a 46% year-over-year increase driven by factors such as higher membership, rate increases, and lower risk adjustment as a percentage of premiums. Additionally, Oscar’s medical loss ratio, which measures the company’s ability to manage costs, also showed improvement.
CEO Mark Bertolini expressed satisfaction with Oscar Health’s strong first quarter results and emphasized that this positive year-over-year improvement across all core metrics sets a solid foundation for the company to achieve total company adjusted EBITDA profitability in 2024.
