Another Profitable Quarter For Oscar Health As Obamacare Business Grows

Oscar Health Wednesday reported $56 million in net income – its second quarterly profit in the company’s 12-year history – as the provider of individual coverage under the Affordable Care Act grows its health plans for consumers and employers.

Oscar, which shook up its management ranks and hired the former Aetna chief executive Mark Bertolini last year, reported net income of $56.2 million, or 20 cents a share, compared to a loss of $15.5 million, or 7 cents a share in the year ago quarter.

Total revenue rose 46% to $2.2 billion in the second quarter compared to the year-ago period “driven primarily by higher membership and rate increases, partially offset by higher risk adjustment as a percentage of premiums.”

Founded in 2012, Oscar had yet to turn a profit until the first quarter of this year, but executives are living up to their predictions of 2024 profitability as they push further into the individual and small group health insurance market.

Oscar’s individual and small group membership that includes Obamacare eclipsed 1.5 million in the second quarter compared to 900,000 a year ago. But Oscar sees an even bigger opportunity in the record enrollment nationally of more than 22 million Americans who are signed up for coverage under the ACA, also known as Obamacare.

“Oscar reported strong second quarter results, closing out the best six months in the company’s history,” Oscar chief executive officer Mark Bertolini said. “We continued to report robust revenue growth, improved operating margin, and strong bottom line performance. Based on our outperformance in the first half of the year, we updated our full year 2024 guidance. We are well-positioned to deliver on our target for Adjusted EBITDA profitability this year.”