Another profitable quarter for Oscar Health as Obamacare business grows

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

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

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

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

Oscar’s individual and small group memberships, including Obamacare, eclipsed 1.5 million in the second quarter, up from 900,000 a year ago. But Oscar sees an even bigger opportunity in the record national enrollment of more than 22 million Americans signed up for coverage under the ACA, also known as Obamacare.

“Oscar reported strong second quarter results, capping off the best six months in the company’s history,” said Mark Bertolini, CEO of Oscar. “We continued to report robust revenue growth, improved operating margin and strong results. Based on our results. above-average performance in the first half of the year, we have updated our expectations for the full year 2024. We are well positioned to achieve our Adjusted EBITDA profitability target this year.”