In a major milestone for the company, Oscar Health reported a $177 million first quarter profit, marking the first time they have been profitable since their inception 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, the company had not been able to turn a profit since its founding in 2012. However, with a first quarter profit of $177.4 million, or 62 cents per share, the company has seen a significant improvement from previous losses. The first quarter net income attributable to Oscar rose by $217.1 million year over year, as stated in the press release announcing their earnings results.
Oscar Health’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 compared to previous years due to better cost management strategies implemented under new leadership.
CEO Mark Bertolini expressed satisfaction with Oscar Health’s strong first quarter results and emphasized that this sets a solid foundation for achieving total company adjusted EBITDA profitability in 2024. He also highlighted that this positive year-over-year improvement across all core metrics is an encouraging sign for the future growth of Oscar Health and their continued success within the competitive healthcare industry.