On Tuesday, Oscar Health announced that it had reported a profit of $177 million in the first quarter. This marks the first time the company has been profitable since its founding over a decade ago. Under new management, led by former Aetna CEO Mark Bertolini, Oscar Health has been able to deliver on its promises to provide individual coverage under the Affordable Care Act more effectively.
Oscar Health posted a first quarter profit of $177.4 million or 62 cents per share, a significant turnaround from a loss of $39.8 million or 18 cents per share in the same period last year. The company’s total health plan membership increased by over 40% in the first quarter, reaching 1.44 million compared to 1.02 million in the same period last year. Total revenue also saw a significant increase, reaching $2.1 billion, up by 46% compared to the previous year.
The growth was fueled by higher membership rates, rate increases and lower risk adjustment as a percentage of premiums. In addition to this improvement in core metrics such as medical loss ratio which is an indicator of cost management ability, CEO Mark Bertolini expressed optimism about Oscar Health’s performance in the first quarter and expressed confidence in achieving total company adjusted EBITDA profitability for the year ahead.
Oscar Health’s success can be attributed to several factors including its commitment to innovation and customer-centricity, as well as its ability to adapt quickly to changes in the marketplace and regulations.
“We are thrilled with our strong performance in Q1,” said CEO Mark Bertolini “Our focus on delivering value for our members and stakeholders remains at the heart of everything we do.”
