February 10, 2023 04:54 PM<\/span>
\n<\/span>\n<\/p>\n<\/div>\n

\n \n $\"OscarOffice_i.jpg\"$ \n<\/picture>\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n

Oscar Health made gains on some vital financial metrics last year and beat analysts\u2019 expectations for the fourth quarter, triggering its share price to rise Friday.<\/p>\n

The insurtech’s medical loss ratio improved from 88.9% in 2021 to 85.3% last year and its administrative expense ratio declined from 21.8% to 20.6%, the company reported Thursday. Oscar Health recorded a $226.6 million net loss during the fourth quarter, which beat analyst expectations of $261.3 million in net losses.<\/p>\n

Not a Modern Healthcare subscriber? Sign up today.<\/em><\/a><\/p>\n

Oscar Health endured a $610 million net loss in 2022, up from $571 million the year before, but the health insurer predicted a better 2023. The company expects to lose $75 million to $175 million this year. Executives said Oscar Health is on track to be profitable by the end of next year and would continue to improve its margins.<\/p>\n

\u201cWe believe we are better positioned than ever before to hit profitability based on disciplined execution,\u201d Oscar Health CEO and co-founder Mario Schlosser said during a call with investors Thursday.<\/p>\n

Wall Street welcomed the news: Oscar Health opened at $3.90 per share Friday and closed at $4.95, a 30.7% increase.<\/p>\n

Oscar Health will continue to focus on efficiency and profitability without making major investments, Schlosser said. The company has been scaling back its operations amid financial strain.<\/p>\n

In December, Oscar Health announced it would a href=”https:\/\/www.modernhealthcare.com\/insurance\/oscar-health-new-florida-members”>halt individual market sales in Florida weeks before the end of open enrollment on the health insurance exchanges. A month before, the company effectively ended its Medicare Advantage business<\/a>. And in August, Oscar Health stopped offering technology services<\/a> to insurers and providers transitioning to risk-based payment models.<\/p>\n

Some remain skeptical about the insurer’s prospects. The fundamentals haven\u2019t changed, said Ari Gottlieb, a principal at A2 Strategy Group. \u201cI don\u2019t think being an individual-only player is actually a viable business model long-term,\u201d he said. \u201cThey will never have scale in the local market to negotiate with providers for really aggressive rates.\u201d<\/p>\n

Oscar Health’s recent finances were boosted by investment income related to high interest rates, executives conceded during the call with investors. Oscar Health collected $25 million from investments during the fourth quarter, up from $334,000 during the final quarter of 2021, a 7,385% increase.<\/p>\n

This story first appeared in Digital Health Business & Technology.<\/em><\/strong><\/a><\/p>\n

<\/body>
\n<\/html><\/div>\n<\/div>\n<\/div>\n

<\/main><\/p>\n<\/div>\n<\/div>\n