Oscar Health announced on Tuesday that they have reported a profit of $177 million in the first quarter. This marks the first time the company has reported a profit since it was founded more than a decade ago. Under new management, Oscar Health has been able to deliver on its promises, providing individual coverage under the Affordable Care Act more effectively.
The company, which brought in former Aetna chief executive Mark Bertolini to lead the team, posted a first quarter profit of $177.4 million, or 62 cents per share. This is a significant turnaround from a loss of $39.8 million, or 18 cents per share, in the first quarter of the previous year. Founded in 2012, Oscar Health had been operating at a loss until this recent turnaround, citing leadership changes and a positive outlook on the individual health insurance market for the change in fortunes.
In the first quarter, Oscar Health saw an increase in total health plan membership by over 40%, now totaling 1.44 million compared to 1.02 million in the same quarter of the previous year. Total revenue also saw a significant increase, reaching $2.1 billion, up by 46% compared to the previous year. This growth was fueled by higher membership, rate increases, and lower risk adjustment as a percentage of premiums.
Moreover, Oscar Health’s medical loss ratio, which is a key indicator of the company’s ability to manage costs, saw improvement as well. CEO Mark Bertolini expressed optimism about the company’s performance in the first quarter, highlighting the improvement in all core metrics and expressing confidence in achieving total company adjusted EBITDA profitability for the year ahead.