Obamacare Provider Oscar Health Says Revenue To Top $6 Billion On Record Enrollment

Oscar Health said its 2022 enrollment will top one million members and the company will reap more than $6.1 billion in premium revenue though 2021 will carry a half billion-dollar loss.

Issuing its 2022 guidance Thursday for what is its first full year as a publicly traded company comes on the heels of expansion into new markets and Thursday’s news that a record 14.5 million Americans signed up for individual coverage under the Affordable Care Act known as Obamacare.

Oscar, known for providing Obamacare coverage under the Affordable Care Act, said 2022 premiums are expected to increase “more than 80% year over year at the midpoint.” Oscar also announced a “$305 million convertible notes transaction to strengthen the balance sheet and provide strong liquidity to support the growth of the organization.”

In recent years, Oscar has expanded into more than 20 states to sell individual coverage while expanding into certain markets to sell Medicare Advantage plans to seniors. Oscar also has a partnership with Cigna to sell coverage to small businesses that expanded for this year.

“Oscar has seen more than 70% annual premium growth, on average, over the past 5 years, demonstrating that our exceptional member experience is resonating with new and existing members alike,” Oscar co-founder and chief executive Mario Schlosser said. “We are honored to welcome our new members and serve the more than one million individuals across the country who are trusting us with their healthcare.”

Though Oscar’s growth continues to attract partners and investors, the company is still losing money.

“For full year 2022, Oscar projects premiums will increase to $6.1 billion – $6.4 billion, a (year over year) increase of roughly 80% at the midpoint,” the company said Thursday. “The Company is also projecting an Adjusted EBITDA loss of ($380) million to ($480) million, which reflects both improving MLR and administrative expense ratios (year over year).”

Oscar, which releases its fourth quarter and full year 2021 earnings on Feb. 10, said preliminary results indicate a 2021 loss of $571,426. An Oscar spokeswoman said the company’s insurance business is targeting 2023 for profitability but the company has yet to provide guidance on “total company profitability.”


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