Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We are pleased with the traction of Campaign Builder plus Oscar's engagement and automation platform |
| So, when I think about where we might be going from a overall, starting with kind of the MLR, I think there's opportunities there around the PBM, where the PBM actually goes out till 2026 and so we have, a contract where each year we will see benefits and this was the -- first year was the largest step change, but there's continue to be meaningful improvements in that contract over the remaining term |
| Strong retention was the biggest part of our growth, I would say that and also provide stabilization and risk adjustment as we go forward into this year |
| So, we feel like we've got a good situation with capital and cash and would expect to be cash flow positive next year, or excuse me, in 2024 |
| And then I think that just broader speaking, we really believe that this market is going to continue to attract individualized consumers and that's where we really shine on building innovative plans and if we can continue to see that development in the market, we think that we have a terrific opportunity to continue to grow the company |
| So we continue to see big operating opportunities on the variable cost side |
| We closed out 2023 with another strong quarter, driving financial performance for the full year and achieving the first of our priorities |
| We achieved insurance company profitability and outperformed our expectation for total company adjusted EBITDA in 2023 |
| We demonstrated the power of our superior member experience and technology by exceeding our projections for open enrolment |
| Today, Oscar has far exceeded these metrics |
| Our strong momentum positions us well to achieve the second priority I mentioned, total company adjusted EBITDA profitability in 2024 |
| Our business is well positioned for sustainable long-term growth and margin expansion |
| We delivered on our commitments for insurance company adjusted EBITDA profitability, and we are well positioned to return to growth and achieve total company adjusted EBITDA profitability this year |
| We continue to see strong retention, which we believe is driven by our superior member experience |
| Our disciplined pricing in 2024 is allowing us to grow our membership well above the market, while driving margin expansion |
| We expect another year of MLR improvement, given our pricing strategy and total cost of care initiatives, including significant PBM savings and enhanced payment integrity efforts |
| We also anticipate continued operational cost improvement, including vendor savings from our enhanced scale and the benefit of operating leverage as we return to growth |
| We are pleased with our strong open enrolment growth and expect it to result in overall a healthier membership profile |
| Overall, 2023 was an exceptional year for Oscar |
| We are delivering on our commitments and are on a solid path to deliver sustained growth with improved margins |
| On Medicaid redeterminations, our 2024 guidance contemplates strong SEP additions and assumes higher acuity and partial year risk adjustment dynamics for these members |
| Our above-market growth was driven by strong retention and new members in both existing and expansion markets |
| We expect total revenues in the range of $8.3 billion to $8.4 billion based on strong retention, above-market growth during the 2024 open enrolment period, and SEP member additions throughout the year as Medicaid redeterminations continue |
| Our NPS continues to be an industry-leading 60 |
| As of December 31, 2023, our insurance subsidiaries had approximately $800 million of capital and surplus, including $248 million of excess capital driven by our strong operating performance |
| Over the past two years, adjusted EBITDA as a percentage of premiums before seeded reinsurance has improved by approximately 15 points |
| We believe our superior member experience is meeting members' needs and continue to demonstrate we can launch and succeed in new markets outside of major metropolitan areas |
| In 2023, we achieved insurance company adjusted EBITDA of $169 million, representing a $450 million year-over-year improvement, and that was above the high end of our guidance range |
| The 2023 insurance company combined ratio significantly improved by approximately 640 basis points year-over-year to 99.5%, driven by both an improved MLR and administrative cost efficiencies |
| Our fourth-quarter medical loss ratio significantly improved by 520 basis points to 86.4%, and our fourth-quarter total company adjusted EBITDA loss was $112 million, a $78 million year-over-year improvement |
| Statement |
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| For the full year, overall claims trends were favourable relative to our expectations |
| Turning to the full year; direct and assumed policy premiums were approximately $6.6 billion, a 3% decrease year-over-year, and modestly above the high end of our guidance range |
| It's an area that's challenging, certainly, but we've got experience there |
| So, there's always some risk with growth and with new members, but we think that we've built those risks into the guidance that we gave you today |
| Partially offsetting these positive developments was a $29 million provision for credit losses on risk-sharing receivables, which mainly impacted the fourth quarter |
| So, it is certainly the case that depending on when you get those members in the year, the economics can be challenging in the first year, but we built that into the plan |
| So, nothing for us that has caused us any challenges in terms of onboarding those members |
| And then finally, if there, if the subsidies were to go away, which obviously nobody can predict, is it fair to say that margin would degrade, or is there a reason to believe, there's some levers you could pull to kind of offset that? Thanks |
| This was driven by lower membership, partially offset by rate increases |
| If I could just sneak one more in, maybe more shorter term; both CVS and Cigna have been seeing, somewhat varied performance on these changes as opposed to you, Centi and Molina and I think CVS in particular has been complaining about, the special enrolment charges or, having less than opportunity to risk code members who join in the middle of the year and that's something that, Oscar has struggled with in the past, but doesn't appear to be impacting results this year and so you could just, square that commentary of, like, are you seeing outsized pressure from the mid-year enrolment dynamic and does that argue that core MLR results are higher than what's been reported and does that -- is that how we should contemplate 2025 MLR improvement from here? Just wanted to understand the varied performance versus some of your competitors |
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