Oscar, whose co-founders include Joshua Kushner and Mario Schlosser, lost $57.6 million in the first half of the year in Texas, New York and California. That’s down from $83 million a year earlier. In Texas and California, the company brought in more in premiums than it spent on care, though in New York its health costs still exceeded premiums.
Going into this year, Oscar scaled back its offerings, raised the premiums it charges and narrowed its networks of doctors and hospitals in an effort to improve financial results. It’s expanding again for 2018, with plans to enter Tennessee and Ohio, and returning to New Jersey. It’s also pushing into new areas of Texas and California.
Many for-profit insurers have exited states’ Affordable Care Act exchange programs after recording losses. The Trump administration, where Joshua Kushner’s brother Jared is a top adviser, has also added to the uncertainty. President Donald Trump has threatened to cut off cost-reduction subsidy program payments to insurers, and the administration hasn’t made clear how it’ll enforce the health law’s requirement that all people buy insurance or pay a fine.
As of June 30, Oscar had 43,618 customers in New York, 30,713 in Texas, and 10,417 in California, according to the regulatory filings.
— Read Insurance Startup Expands in Medicare With ACA in Limbo on ThinkAdvisor