In the first quarter of 2023, Oscar Health reported a profit of $177 million, marking the first time the company has been profitable since its inception over a decade ago. This achievement is a significant milestone for the provider of individual coverage under the Affordable Care Act as they fulfill promises made under new management.
Oscar Health’s financial performance improved dramatically after former Aetna chief executive Mark Bertolini took over as CEO last year. The company had not been able to turn a profit since its founding in 2012 until this recent success.
One of the factors contributing to Oscar Health’s strong financial performance was an increase in total health plan membership. Membership grew by more than 40% from the year-ago quarter, totaling 1.44 million members. The company’s revenue also increased by 46% year-over-year to $2.1 billion in the first quarter, driven by higher membership, rate increases, and lower risk adjustment as a percentage of premiums.
Another key metric that showed improvement was Oscar Health’s medical loss ratio, which measures their ability to manage costs effectively. This ratio is an essential measure for insurers and indicates that they are able to keep their expenses under control while still providing quality care to their customers.
CEO Mark Bertolini expressed his satisfaction with the company’s strong first quarter results and emphasized that these positive results set a solid foundation for achieving total company adjusted EBITDA profitability in 2024. He believes that Oscar Health’s performance in this period positions them well on track for long-term success and growth in the healthcare industry.