Oscar Health posts $361 million Q2 profit as ACA membership climbs

Oscar Health announced a second-quarter net profit of $361.8 million, equating to $1.10 per share, after posting a loss in the same period last year. The company’s revenue jumped 70 percent year over year to $4.9 billion as its ACA enrollee base expanded to 2.9 million members, up from just over 2 million a year earlier. A key factor was the reduction of the medical loss ratio to 79.2 percent, helped by disciplined pricing and $164 million of favorable reserve development.

CEO Mark Bertolini, who took the helm in March 2023, said the firm’s technology and scale position it for continued profitable growth as rivals like Aetna and Cigna withdraw from the individual market. Oscar raised its outlook for the remainder of the year, citing strong fundamentals and momentum. The company expects its consumer-focused products and cost-control measures to sustain earnings growth.