In the first quarter of 2021, New York City’s insurance losses increased to $ 87.3 million, with policy profits declining year-on-year to nine percent.
At the end of the first quarter of March 31st, Oscar earned $ 369.3 million, up 319% from $ 88.1 million in the same period last year. Much of the revenue comes from policy premium growth, which has grown by 44% annually to $ 823 million. It gave the company the opportunity to increase its membership and become dependent on re-insurance.
During the call, CEO Mario Schlozer said the company By 2023, it was on the verge of becoming profitable. The epidemic, coupled with the disruption of care delivery models and high demand for risk relationships, will play a key role in moving the company forward. is there.
“You’ve made the transition from post-epidemic to virtual care, but you’ve moved on to more valuable care, more vulnerability,” Schlocker said. Obviously this starts in government business, Medicare Advental, but I think it’s also going a long way to business.
Membership membership has increased to 542,220, and by 2020 it will increase from 420,552 to about 29%. Medicare benefits more than double the year to 3,628. year. The lion’s share of membership has continued to be used individually and in small groups, but the total enrollment in this sector has reached 535,000.
Here are five things you need to know about the company’s first quarter earnings call:
1. Schuller has given ACA a special enrollment period of 50,000 new members in the first quarter, and hopes that early premium tax credits will further boost membership growth. Florida, Texas, and California currently represent the largest number of Oscar nominees. New members have not been sicker than expected, and the company has not had a bad choice. These members generally come directly to Oscar, not through a broker, and often choose a startup even if it does not offer the cheapest plan in the market.
In light of the transition to higher premium plans, this makes us think it is important to have a model where people really like the model more than the price, says Schlozer.
2. Oscar was terminated in March after the company’s initial public offering and profitability increased Reliance on re-insurance partners Scott Blackley, chief financial officer for the year, said. Insurers basically take out a member’s premium, taking into account some of their risks. Linn In 2020, Oscar transferred 77 percent of its premium to transmitters. During the first quarter, the company paid 44% of its policy premium.
“We’re not saying we’re not going to use the quota, but I think we’re comfortable with a percentage in the near future,” said Blackley. I expect that we will manage the future in a flexible way.
3. Oscar plans to launch at least 72,000 subscribers to + Oscar Insurance Technology Services business next year. In addition to third-party customers, such as Health First Health Plans and Signa + Oscar, the company also considers its members as customers in this forum, which represents the strategic distance from the partnership mentioned in’S-1 ‘. . The company, in partnership with Health First, counts 37,000 new Medicare users and has 20,000 private markets on this platform.
Schlozer added that the company has provided supportive health plans with Cleveland Clinic, ACHN in South Florida and Montefio.
The next stage of development is the preparation for the + Oscar business with providers who support or sincerely pay for health plans, especially those who want to risk Medicare benefits, individuals and small employers. is there .
4. Oscar has now expanded its production of virtual care in 82 counties. Members of the Oscar Medical Group said that when they use Oscar Medical Group, they are 10% more likely to take Oscar as insurance than those who do not use the digital program. The company encourages you to enroll in a virtual care program by offering “flexible discounts” on primary care services and often recommended free secondary services such as laboratory tests.
5. The company’s medical loss rate or MR, which measures how much an insurer will spend on the care of its members. Sign in with 74.4%. Schlozer He said the use of non-COVID-19 will be phased out by the second half of 2021 and he expects to complete the MR by about 80% of the year. Low usage was recorded in the highest COVID-19 costs in January.
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