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Sep 30, 2022
Oscar Health Q3 2022 Earnings Report
Announced results for the third quarter of 2022, demonstrating significant membership growth and improvements in key financial metrics.
Key Takeaways
Oscar Health reported an 81% year-over-year increase in membership, reaching 1,075,445 members as of September 30, 2022. The company's premiums earned increased by 116% year-over-year, and the Medical Loss Ratio (MLR) improved by 980 bps to 89.9%. Oscar Health is now targeting Total Company profitability in 2024, a year earlier than previously expected.
Membership increased by 81% year-over-year, reaching 1,075,445 members as of September 30, 2022.
Premiums earned increased by 116% year-over-year to $954 million.
Medical Loss Ratio (MLR) improved by 980 bps year-over-year to 89.9%.
The company is now targeting Total Company profitability in 2024, a year earlier than previously expected.
Oscar Health
Oscar Health
Oscar Health Revenue by Segment
Revenue by Segment
Individual and Small Group Revenue
CapyFin.comCigna+Oscar Revenue
CapyFin.com Forward Guidance
Oscar Health is updating its FY22 outlook to reflect the impact of higher membership. The Company now expects Direct and Assumed Policy Premiums will be $6.7 billion to $6.9 billion and Adjusted EBITDA loss will be modestly above the ($480 million) high-end of the prior range of ($380 million) to ($480 million).
Positive Outlook
- Direct and Assumed Policy premiums (in thousands) of $6,700,000 - $6,900,000
- Medical Loss Ratio near the midpoint of the 84% - 86% range
- InsuranceCo Administrative Expense Ratio at the high-end of the 19.5% - 20.5% range
- InsuranceCo Combined Ratio towards the high-end of the 104% - 106% range
- Adjusted Administrative Expense Ratio near the midpoint of the 24% - 26% range
Challenges Ahead
- Adjusted EBITDA(1) loss (in thousands) modestly above the ($480,000) high-end of the ($480,000) - ($380,000) range
- The impact of COVID-19 on global markets, economic conditions, the healthcare industry and our results of operations, and the response by governments and other third parties
- Our ability to retain and expand our member base
- Our ability to execute our growth strategy and scale our operations
- Our ability to meet increased capital requirements as a result of expanding membership
Revenue & Expenses
Visualization of income flow from segment revenue to net income