HealthcareOscar Health leaves two states amid regulatory, commercial challenges

Oscar Health leaves two states amid regulatory, commercial challenges

Oscar Health will exit Colorado and Arkansas in its push toward profitability, company executives said during its first-quarter earnings call.

The insurtech does not expect the move to have a “significant or even close to material effect” on its profits for the year, Chief Financial Officer Scott Blackley said during the call.

Oscar Health offered individual exchange plans in Arkansas for the first time in 2022. At the end of 2021, it counted 2,865 members in Colorado, or less than 1% of its total enrollees.

The decision was made in reaction to a slew of local regulatory changes, as a means to reduce the company’s reporting burden and because the company failed to attract members in those states, CEO Mario Schlosser said during the call.

“We did not get the scale there and did not see a great right to win,” Schlosser said during the call.

Oscar Health did not immediately respond to an interview request about what regulatory changes its executives were referring to.

The announcement comes as the insurtech continues to aim for profitability by its insurance arm by next year.

During the first-quarter, Oscar Health reported a net loss of $77.3 million, a decrease from $88.1 million during the same period last year. The company more than doubled its year-over-year revenue to $972.7 million.

The company’s membership grew to more than 1 million enrollees. One in every 13 members who purchase coverage on the exchange is insured through an Oscar Health plan, the company said.

It’s not the only insurtech downsizing its geographic footprint. In April, rival Bright Health Group announced it was exiting six states and ending its employer business, in a move to stabilize its finances.

Original Source Link

Latest News

Kim Kardashian Losing 20k Followers A Day Since Taylor Swift Diss – And Fans Want Kris Jenner To Step In!

Kim Kardashian is shedding followers — and it’s all because of Taylor Swift?! As of late Monday morning, the SKIMS mogul...

This $12 billion high speed rail will connect Las Vegas and Los Angeles and lay ‘the foundation for a new industry’

The goal is for the line to be up and running for the LA Olympics in 2028. Work...

Biden tries a White House reset on climate and trade

This article is an onsite version of our Trade Secrets newsletter. Premium subscribers can sign up here to...

Discord CEO Jason Citron on why gaming and group chats are the future of the internet

Today, I’m talking to Jason Citron, the co-founder and CEO of Discord, the gaming-focused voice and chat app....

Prosecutors Want Trump Threatened With Jail For Gag Order Violations

Neal Katyal said that prosecutors in Manhattan aren’t looking to fine Trump as much as they want Judge...

Must Read

How leaders can be vulnerable on social media without being TMI oversharers

Press releases won’t make people want to work...

KKR entrusting green transition to ex-CEO of oil-guzzling giant Shell

Private equity giant KKR has turned to an...
- Advertisement -

You might also likeRELATED
Recommended to you