Oscar Health will exit two markets for the 2023 plan year as the company focuses on driving toward profitability, executives said Tuesday.
The insurer will leave Arkansas and Colorado and does not expect these exits to have a major impact on its financial outlook. These are "small markets" for Oscar, and would have required some heavy regulatory lifting to maintain the presence there, CEO Mario Schlosser said.
Schlosser did not specify the regulatory pressures the company would be facing but said it made more sense to exit the markets rather than adjust because Oscar's presence was quite small.
"It just made sense for us to save that work if we don't think we have a right to win in those markets," Schlosser said.
Oscar Health went public in early 2021 amid a rush of insurtech startups launching initial public offerings. The company has historically struggled to turn a profit and posted $77.3 million loss in the first quarter.
However, Oscar has steadily slimmed those losses since going public, with the goal of becoming profitable in 2023.
Schlosser said on the earnings call that Oscar has hit 1.1 million members across its platform and that 1 in 13 people enrolled in coverage on the Affordable Care Act's exchanges is in an Oscar plan.
He added that premium revenues and membership have doubled year over year.