Oscar Health Inc (NYSE:OSCR), a trailblazer in the health insurance industry, recently unveiled its financial achievements for the fourth quarter and the entirety of 2023. Renowned for revolutionizing healthcare through a blend of technology, transparency, and patient-centric services, Oscar Health's array of insurance products is designed to enhance accessibility and affordability across the healthcare spectrum.
Despite a 3% dip in Direct and Assumed Policy Premiums to $6.6 billion in 2023, attributed mainly to a slight decrease in membership, Oscar Health witnessed a remarkable 47% surge in Premiums Earned to $5.7 billion. This growth primarily stems from the strategic application of deposit accounting for quota share reinsurance agreements and an optimized risk transfer per member.
The company's InsuranceCo Combined Ratio saw an impressive improvement, landing at 99.5%—a 640 basis point enhancement year over year. This notable progress is driven by an improved Medical Loss Ratio, which was reduced by 370 basis points to 81.6%, and a more efficient InsuranceCo Administrative Expense Ratio, which bettered by 270 basis points to 17.9%. These strides underscore Oscar Health's adept pricing strategy, cost of care initiatives, and a focus on operational efficiency.
Moreover, the Adjusted Administrative Expense Ratio improved by 350 basis points to 21.0%, leading to a significant $417 million year-over-year amelioration in the Adjusted EBITDA loss, which stood at $45 million. The Net Loss also saw substantial recovery, improving by $339 million to $271 million.
For the upcoming year, Oscar Health is optimistic, projecting Total Revenue to range between $8.3 billion and $8.4 billion. The company anticipates a Medical Loss Ratio between 80.2% and 81.2%, an SG&A Expense Ratio between 20.5% and 21.0%, and an inspiring Total Company Adjusted EBITDA forecast of $125 million to $175 million.
CEO Mark Bertolini expressed satisfaction with the 2023 outcomes, highlighting the company's surpassing of core metric expectations and the attainment of Insurance Company Adjusted EBITDA profitability. The path to consolidated Adjusted EBITDA profitability in 2024 appears clear and attainable.
Oscar Health's journey towards sustainable margin expansion and its optimistic 2024 Adjusted EBITDA outlook demonstrate the company's unwavering commitment to improving operational efficiency and financial health. This forward momentum is expected to continue, propelled by strategic member engagement, diligent cost management, and the innovative use of technology to elevate healthcare delivery.