Oscar’s losses stem from being a startup, costlier customers and a shortfall in government programs. Oscar had to participate in Obamacare's risk adjustment program, which cost them $28.3m, while the Obamacare stabilization program only paid out 12.6% of the amount insurers requested. Can't feel too bad for Oscar, last month they raised $400m from Fidelity on a $3b valuation.
Schlosser said last month that Oscar is adjusting its strategy to limit costs as it enters new markets in California and Texas. The insurer -- valued at $2.7 billion in its latest round of funding, according to a person familiar with the matter -- has struck deals with limited groups of hospitals and doctors, rather than offering broad networks like traditional insurers. Oscar has also been narrowing its network in New York, and Schlosser said the company is getting better prices for some services as its membership increases. QUICKTAKE Health Exchanges “We don’t see anything right now, really nothing whatsoever, that would suggest that this is not a viable market,” he said.