Oscar Health reported a first quarter profit of $177.4 million, marking the first time the company has been profitable since it was founded over a decade ago. This achievement comes as the provider of individual coverage under the Affordable Care Act 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 its inception in 2012. However, with this first quarter profit, the company has seen a significant improvement from previous losses.
Oscar Health’s total health plan membership increased by more than 40% from the year-ago quarter, totaling 1.44 million members. The company 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 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 year and positions them to achieve total company adjusted EBITDA profitability in 2024.
