Oscar Health Tuesday reported a $25 million profit for the full year 2024 as the provider of individual and small group health insurance achieved record enrollment and revenue growth.
The provider of individual coverage under the Affordable Care Act, also known as Obamacare, lost $153.5 million in its fourth quarter but still ended 2024 profitable, which was the first full year the company reported a net income since it was founded more than a decade ago. The net income of $25.4 million for last year, or 10 cents a share, compared to a loss of more than $270 million in 2023 for “a $296.2 million improvement year-over-year,” Oscar reported.
“Oscar reported positive full year 2024 results, capping the strongest year of financial performance in company history,” Oscar Health chief executive officer Mark Bertolini said in a statement accompanying the earnings report. “We reported both adjusted EBITDA and net income profitability – two significant milestones. Our strong top and bottom line performance, all-time-high-membership, and consistent execution demonstrate our ability to deliver sustained profitable growth.”
Founded in 2012, Oscar had yet to turn a profit for a full year, but Bertolini — the former CEO of Aetna who was tapped as Oscar’s top executive in March of 2023 and his team – have delivered on their promises as they remain bullish on the individual health insurance market.
Oscar ended 2024 with enrollment of nearly 1.7 million, which was mostly from individual and small group health plan members. That compares to a little over 1 million total health plan membership in 2023.
Total revenue rose to nearly $2.4 billion in the fourth quarter compared to $1.4 billion in the year-ago quarter. And for all of 2024, revenue eclipsed $9.1 billion, which was a 56% increase compared to $5.8 billion in 2023.
Enrollment is already off to a good start for 2025, the company said, as millions of Americans signed up for Obamacare during the open enrollment period for the 2025 health plan year.
Oscar executives said their enrollment, too, benefited from the influx of Americans signing up for Obamacare, helping grow in new markets and established areas in the insurer’s 18-state footprint selling health coverage. “Oscar’s competitively priced products, technology, and superior member experience drove strong growth and retention across Oscar’s 18-state footprint,” Oscar said in a statement accompanying earnings.
While the individual market grew 13% year-over-year to a record 24 million Americans, Oscar executives said the company’s “growth outpaced the market by close to three times at 37%,” the company said in a statement. As of Feb. 1, Oscar is serving 1.8 million health plan members, the company said.
Given Oscar’s ability to attract more health plan members during the last open enrollment period, the company said it “anticipates total revenue of $11.2 billion to $11.3 billion” for 2025.
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