Oscar Health posted a higher net loss in 2022 than the year prior, but executives remain optimistic that the company will meet its profitability goals.
The insurtech posted a $609.6 million loss last year, according to its earnings report; by comparison, it reported a $571.2 million loss in 2021. This includes a $226.6 million loss in the fourth quarter, which fell short of Wall Street analysts' expectations, according to Zacks Investment Research.
While the company's losses grew, so did its revenue by a wide margin, according to the report. Oscar Health brought in $3.96 billion in revenue for the year, compared to $1.8 billion in 2021. Fourth-quarter revenues were 995.1 million, which did beat the Street, according to Zacks.
The company has circled 2023 as key in its path to profitability and is aiming to turn a profit by 2024. While its losses grew in 2022, Oscar's top brass said that goal is still in sight.
"We believe we are better positioned than ever before to hit profitability based on disciplined execution," Oscar CEO Mario Schlosser said on the company's earnings call.
Oscar Health's membership has exploded as enrollment rises on the Affordable Care Act's (ACA's) exchanges to the point where the company pumped the breaks on new sign-ups in one of its main states, Florida, to focus on its 2023 targets.
Total membership across all of its business lines was nearly 1.2 million at the end of 2022, compared to 598,169 at the end of 2021. That includes 1.1 million people in its ACA plans; 62,627 in its Cigna + Oscar small business plans; and 4,452 in Medicare Advantage (MA).
By comparison, 577,799 people were enrolled in its ACA plans at the end of 2021 alongside 16,506 Cigna + Oscar members and 3,864 MA members.