Oscar Health will go out of Colorado and Arkansas to push it toward profit, company executives said in its first quarter earnings call.
Insurtech did not expect the move to have “significant or even nearly material impact” on its revenues for the year, Chief Financial Officer Scott Blackley said during the call.
Oscar Health is offering individual exchange plans in Arkansas for the first time in 2022. By the end of 2021, it will have 2,865 members in Colorado, or less than 1% of its total enrollees.
The decision was made in reaction to several local regulatory changes, as a way to reduce the company’s reporting burden and because the company failed to attract member states, CEO Mario Schlosser said. during the call.
“We didn’t get the measure there and we didn’t see much right to win,” Schlosser said during the call.
Oscar Health did not immediately respond to an interview request about the regulatory changes explained by its executives.
The announcement comes as insurtech continues to seek for profit through its insurance arm next year.
During the first quarter, Oscar Health reported a net loss of $ 77.3 million, a decrease from $ 88.1 million in the same period last year. The company more than doubled its year-over-year revenue of $ 972.7 million.
The company’s membership has grown to over 1 million enrollees. One in every 13 members who purchase exchange coverage is insured through the Oscar Health plan, the company said.
It’s not just insurtech that is lowering its geographic footprint. In April, rival Bright Health Group announced it would exit six states and end the employer’s business, in a move to strengthen its finances.