Despite seeing revenue gains and significant membership growth, three of the largest health insurtech providers — companies that blend technological innovations with traditional insurance — posted losses exceeding $570 million in 2021.
Oscar Health saw its membership grow 49 percent year over year and as a result it saw its revenue grow to $1.8 billion in 2021, nearly quadruple the $462.8 million recorded in 2020. Despite this growth, the health insurtech posted a net loss of $571.4 million in 2021, compared to a net loss of $406.8 million recorded in 2020. Oscar attributed the net loss to a growth in its operating expenses, which grew from $865 million in 2020 to $2.4 billion in 2021.
"We maintain a disciplined focus on efficiency and we believe we remain well positioned on our path to profitability for our insurance business in 2023," Oscar Health said in its financial report.
Other major health insurtechs saw the same trend in 2021. For example, Bright Health Group saw its commercial membership grow significantly to 611,078 members in 2021, up from 145,459 members in 2020. But Bright Health posted a net loss of $1.2 billion on revenues of $4 billion in 2021. This compares to 2020, when the health insurtech posted a net loss of $248.4 million on revenues of $1.2 billion.
"Despite a challenging 2021, we have conviction in our strategy to continue driving alignment and integration of care delivery and financing at the local level," Bright Health said in its earnings release.
Clover Health also posted a net loss in 2021. The health insurtech posted a net loss of $587.8 million on $1.5 billion in revenue in 2021. This compares to 2020, when Clover Health posted a net loss of $136.4 million on revenues of $672.9 million. Clover Health more than doubled its membership in 2021 to 129,996, up from 58,056 members in 2020.
"We are really excited about where Clover sits today and our prospects in the future," said Clover Health CEO Vivek Garipalli in a news release. "This year, we are expecting significant growth in revenue and lives under management while at the same time we believe we are driving operating efficiencies and improved [medical cost ratios]."