Oscar Health's Q4 2024: Membership Growth, Pricing Strategies, and MLR Trends Under Scrutiny
Earnings DecryptTuesday, Feb 4, 2025 8:19 pm ET

These are the key contradictions discussed in Oscar Health, Inc.'s latest 2024Q4 earnings call, specifically including Membership Growth and Enrollment Dynamics, Pricing Strategy and Market Stability, and MLR Trends:
Financial Performance and Profitability:
- Oscar Health reported total company adjusted EBITDA profitability of $199 million, a $245 million year-over-year improvement, and net income of $25 million, a $296 million increase over the prior year.
- The growth was driven by strong revenue growth of 57% year-over-year to $9.2 billion, a stable medical loss ratio of 81.7%, and improved efficiency with the SG&A ratio improving by more than 500 basis points to 19.1%.
Membership Growth and Market Share:
- Oscar achieved record membership, with 1.8 million members as of February 1, 2025, up from 1.2 million members the previous year, marking a 37% increase.
- The growth was fueled by competitive pricing, technology, and superior member experience, leading to market share gains in states like Florida, Tennessee, and Texas.
Retention and Enrollment Strategy:
- Oscar maintained solid retention across its 18-state footprint, with strong enrollment in new plans like the tech-first HMO and multi-condition plan.
- The retention was supported by the company's strategic pricing and product innovation, including Spanish-first solutions that attracted more Hispanic and Latino members.
Operational Efficiency and AI Integration:
- Oscar's SG&A ratio improved by 520 basis points year-over-year to 19.1%, driven by higher fixed cost leverage and variable cost efficiencies.
- AI integration played a significant role in improving operational efficiency, with AI handling more than 50% of onboarding and post-care instructions in Oscar Urgent Care, reducing provider paperwork and speeding up care.
Financial Performance and Profitability:
- Oscar Health reported total company adjusted EBITDA profitability of $199 million, a $245 million year-over-year improvement, and net income of $25 million, a $296 million increase over the prior year.
- The growth was driven by strong revenue growth of 57% year-over-year to $9.2 billion, a stable medical loss ratio of 81.7%, and improved efficiency with the SG&A ratio improving by more than 500 basis points to 19.1%.
Membership Growth and Market Share:
- Oscar achieved record membership, with 1.8 million members as of February 1, 2025, up from 1.2 million members the previous year, marking a 37% increase.
- The growth was fueled by competitive pricing, technology, and superior member experience, leading to market share gains in states like Florida, Tennessee, and Texas.
Retention and Enrollment Strategy:
- Oscar maintained solid retention across its 18-state footprint, with strong enrollment in new plans like the tech-first HMO and multi-condition plan.
- The retention was supported by the company's strategic pricing and product innovation, including Spanish-first solutions that attracted more Hispanic and Latino members.
Operational Efficiency and AI Integration:
- Oscar's SG&A ratio improved by 520 basis points year-over-year to 19.1%, driven by higher fixed cost leverage and variable cost efficiencies.
- AI integration played a significant role in improving operational efficiency, with AI handling more than 50% of onboarding and post-care instructions in Oscar Urgent Care, reducing provider paperwork and speeding up care.

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