Oscar Health has nearly doubled its membership in a year but said it would be pausing external deals around its technology platform, +Oscar, for the next 18 months, according to the company's second-quarter earnings call Aug. 11.
"Oscar's first half results reflect our continued momentum and demonstrate our technology platform's differentiated ability to support our increasing scale," Mario Schlosser, CEO and co-founder, said. "We remain laser-focused on the execution of our strategic plan to reach our profitability target for the insurance product in 2023, laying the foundation that we will continue to build upon."
In January 2021, Oscar entered an administrative services agreement with Health First Health Plans. During the call with investors, Mr. Schlosser said challenges with integrating the large systems led to the decision to pause outside deals with +Oscar.
"Given these demands and our resources, we will not pursue full-service +Oscar deals for implementation in the next 18 months," he said. "We certainly remain committed to the +Oscar business."
Six things to know about Oscar's second-quarter earnings:
- Total revenues in the second quarter were $1.02 billion. In the first six months of the year, revenues were $1.99 billion, rising 121 percent from $896.7 million year over year.
- Operating expenses in the second quarter were $1.12 billion. In the first six months of the year, operating expenses were $2.17 billion, rising 109.1 percent from $1.04 billion year over year.
- The company lost $112.1 million in the second quarter. In the first six months of the year, the company lost $189.4 million, rising 16.8 percent from a loss of $162.2 million year over year.
- The company's medical loss ratio in the second quarter was 82.2 percent, which was only slightly different from 82.4 percent during the same period last year.
- As of June 30, individual and small group membership stood at 986,000. At the same time last year, membership was 554,000.
- Cigna + Oscar membership was 46,000 as of June 30. In 2021, it was 4,617, or an 897.3 percent increase.