Oscar Health reported a first quarter profit of $177.4 million, marking the company’s first profitable quarter since its founding in 2012. This turnaround was attributed to new management led by former Aetna CEO Mark Bertolini, as well as an optimistic outlook on the individual health insurance market.
Under Bertolini’s leadership, Oscar Health has been able to deliver on its promises to provide individual coverage under the Affordable Care Act more effectively. The company saw an increase in total health plan membership by over 40%, reaching 1.44 million compared to 1.02 million in the same quarter of the previous year. Additionally, total revenue saw a significant increase, reaching $2.1 billion, up by 46% compared to the previous year.
One of the key factors driving this growth was higher membership, which was complemented by rate increases and lower risk adjustment as a percentage of premiums. Furthermore, Oscar Health’s medical loss ratio improved significantly, demonstrating the company’s ability to manage costs effectively.
CEO Mark Bertolini expressed his 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.
