Oscar Health is pressing pause on new sign-ups in Florida as membership on the Affordable Care Act's (ACA's) exchanges swells.
The insurtech said Monday that it had reached out to regulators in advance of open enrollment to find ways to limit enrollment growth as market dynamics change and certain carriers exit various markets. It aimed to limit growth so that it would be within expected parameters of about 1 million members, plus or minus 10%.
"This limit will allow the company’s projected membership not to exceed the company’s targets for 2023 and maintain its strong financial position," Oscar said in the release.
Members who are seeking to renew their coverage with Oscar for 2023 will not be impacted by the decision, which took effect at midnight on Dec. 13. People who newly enrolled with Oscar Health prior to Dec. 13 will also not be affected, according to the announcement.
Oscar said that it still views Florida, its largest market, as a crucial focus.
"Oscar remains steadfast in the Florida market and intends to continue to provide coverage throughout 2023 and beyond," the company said in the release.
Oscar Health has put a focus on its core ACA exchange business over the past several months as it aims to chart a course to profitability for the first time. The insurer has put a pin in booking new customers for its +Oscar technology stack and has slashed its Medicare Advantage (MA) footprint.
CEO Mario Schlosser told investors on the company's third-quarter earnings call that it sees the potential in MA but has determined partnership is the best avenue for Oscar moving forward.
Oscar Health had not returned a request for comment as of publication time.