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.
Oscar Health had not been able to turn a profit since its inception 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.
The total health plan membership of Oscar Health 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 across all core metrics during this period.
CEO Mark Bertolini expressed satisfaction with Oscar Health’s strong first quarter results and emphasized that they have achieved positive net income for the first time since their founding in 2012 through their focus on managing costs and increasing revenue streams. He believes that this solid foundation sets them up for achieving total company adjusted EBITDA profitability by 2024 and positioning them for long-term success in the insurance industry.