Take a closer look at Oscar Health's transformational dilemma

Since the second half of 2016, Oscar Health has no longer had the momentum of the previous triumph. With the further disclosure of market data, Oscar Health is more about the story of transformation than the expansion of the previous insurance market. The description of such companies in the US market uses more "struggle" and "uncertainty".

According to data disclosed by Oscar Health in November, its net loss in the third quarter was as high as $45 million, which was the largest single-quarter loss since the first half of the loss of $83 million. The loss in the first three quarters has reached 128 million. The US dollar significantly exceeded the $105 million loss for the full year of 2015. According to the disclosed documents, 2/3 of the losses were mainly used to invest in building hospital networks and developing small business customers. With the exit of the two markets in New Jersey and Dallas this year, the number of Oscar Health users has been very good last year, which led to the overall revenue can not meet the expectations of the beginning of 2016, in the face of huge losses, It is impossible to achieve the expected $34 million underwriting profit.

As analyzed in previous reports, the personal insurance market promoted by the Obama Care Act (ACA) not only failed to meet expectations in terms of the number of people insured, but also brought huge losses to all insurance companies entering the market. Several large commercial insurance companies have already withdrawn from this market. Moreover, with the abolition of the ACA and the end of subsidies to the individual insurance market after the Republican Party took office, the individual insurance market will not only grow, but will continue to shrink. If it is still unwise to still rely on the insurance market to tell the story to the market, Oscar Health has begun a comprehensive transformation. The first is to spend huge sums of money to establish a narrow network of medical services, trying to reduce service costs through self-construction and cooperation, thereby reducing losses. Secondly, it began to enter the small business market, and even plans to enter the big business market in the future. Finally, self-built clinics provide services directly to users. In December 2016, Oscar Health's first clinic in Brooklyn, New York, was opened.

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