Oscar Health, the provider of individual coverage under the Affordable Care Act, has reported a $177 million first quarter profit. This marks the first time the company has been profitable since its founding over a decade ago. The achievement comes as the company fulfills promises made under new management, with former Aetna CEO Mark Bertolini leading the turnaround in their financial performance.
Last year, Oscar Health brought in Bertolini to lead the company and saw a significant improvement from previous losses. The company’s total health plan membership increased by more than 40% from the year-ago quarter, totaling 1.44 million members. They 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, emphasizing the positive year-over-year improvement across all core metrics and achieving positive net income. He believes that the company’s performance in the first quarter sets a solid foundation for the year and positions them to achieve total company adjusted EBITDA profitability in 2024.
