Oscar Health will exit the California individual ACA insurance market for plan year 2024 as part of a push to make its insurance business profitable.
On a May 9 call with investors, transcribed by Seeking Alpha, Oscar Health CEO Mark Bertolini said the company is exiting underperforming markets to improve its profitability.
"The company has been disciplined in managing its portfolio and improving the sustainability of our margins over time," Mr. Bertolini said.
Oscar Health plans to reenter the California market in the future, Mr. Bertolini said.
Interim CFO Sid Sankaran said the California market represents less than 5 percent of Oscar Health's membership, with around 35,000 members in the state.
The insurtech improved on its losses in the first quarter of 2023, according to its earnings report published May 9. Oscar Health posted a $39.6 million loss in the first three months of 2023, down from $77.3 million in the same time period in 2022.
Mr. Bertolini, who assumed leadership of Oscar Health in April, said Oscar Health will expand its footprint beyond where it currently is.
"We're looking at new market entry opportunities," Mr. Bertolini told investors. "And that's what we talk about when we talk about sculpting the portfolio. Where should we be, where we shouldn't be any longer, how do we change the portfolio to get the best return as possible?"