Oscar Health plans to expand its individual coverage offerings into rural markets in 2024 as the … [+]
Oscar Health plans to expand its individual coverage offerings into rural markets next year as the health insurer works to become profitable for the first time in its history.
Oscar, which is one of the nation’s largest providers of individual coverage under the Affordable Care Act known as Obamacare, on Tuesday said total health plan membership dropped below 1 million to 970,543 in the second quarter ended June 30. That compares to nearly 1.04 million members in the year-ago period.
But Oscar plans an aggressive rural expansion in “more than half” of the 20 states where it currently sells health insurance. The company, however, didn’t disclose states where it plans to expand as it continues to evaluate pricing and related market dynamics.
“Our growth strategy for 2024 focuses on leveraging the breadth of our deep provider partnerships to expand into more rural areas,” Oscar chief executive Mark Bertolini told analysts on a call Tuesday evening to discuss second quarter earnings. “We are planning to increase our service area footprint in more than half of our current states.”
Oscar, which shook up its management ranks and hired the former Aetna chief executive Bertolini earlier this year, reported a net loss of $15.4 million in the second quarter compared to a net loss of $112 million in the year-ago period.
Founded in 2012, Oscar has yet to turn a profit but executives are forecasting that will change next year and remain bullish on the individual health insurance market to get them to a better financial position.
“We believe that the individual market is the future,” Bertolini said. “Our experience, consumer-focused approach, technology and capabilities will enable us to continue thriving amidst this dynamic environment.”