Oscar Health’s recent financial results indicate a significant milestone for the company, as it reported its first quarterly profit since its inception in 2012. Under the new leadership of Mark Bertolini, formerly Aetna’s CEO, the company recorded a profit of $177 million in the first quarter of 2024. This marked a significant turnaround from a loss of nearly $40 million in the same period last year.
Key to this turnaround was a 40% increase in health plan membership, reaching 1.44 million members. The resulting revenue surged to $2.1 billion, a 46% year-over-year increase. The impressive growth is primarily attributed to increased membership, rate adjustments, and a lower risk adjustment proportion relative to premiums.
Oscar Health’s improved medical loss ratio further underlines its enhanced cost management capabilities. This strong performance demonstrates the company’s potential and reinforces its leadership’s optimistic outlook for the future. According to Bertolini, these results provide a solid foundation for 2024 and affirm a clear path to achieving adjusted EBITDA profitability for the entire year.