Obamacare Insurer Lost $57.6 Million in First Half of 2017

Oscar Insurance Corp. is hemorrhaging money on the Obamacare state exchanges, posting a $57.6 million loss in the first half of 2017.

Oscar is a health insurance startup that primarily sells Obamacare insurance plans, but the company has consistently had trouble making its business profitable. The company lost $57.6 million thus far in 2017 in Texas, New York, and California, down from an $83 million loss in the first half of 2016.

To mitigate some of its 2016 losses, Oscar, like many other health insurance providers, reduced its exposure to the Obamacare state exchanges in 2017. The company raised premiums and lowered the number of doctors and hospitals within its network. Oscar does plan to expand offerings in more states in 2018, citing plans to enter the Ohio, New Jersey, and Tennessee marketplaces.

Major health insurance providers, like Aetna, Humana and Blue Cross Blue Shield, have totally exited, or greatly reduced their participation in, the Obamacare exchanges. In the states where insurance companies remain, they are planning to raise premiums as high as double-digit percentages.

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