Oscar Health, Inc. (NYSE:OSCR) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET Company Participants Cornelia Miller - Vice President, Corporate Development and Investor Relations Mario Schlosser - Co-Founder and Chief Executive Officer Scott Blackley - Chief Financial Officer Sid Sankaran - Interim Chief Financial Officer Conference Call Participants Connor Massari - Morgan Stanley Stephen Baxter - Wells Fargo Nathan Rich - Goldman Sachs Josh Raskin - Nephron Research Operator Good afternoon. M ...

Oscar Health, Inc. (NYSE:OSCR) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Cornelia Miller - Vice President of Corporate Development & Investor Relations Mario Schlosser - Co-Founder & Chief Executive Officer Scott Blackley - Chief Financial Officer Conference Call Participants Michael Hall - Morgan Stanley Stephen Baxter - Wells Fargo Securities Jonathan Yong - Credit Suisse Kevin Fischbeck - Bank of America Josh Raskin - Nephron Research Lindsay Golub - Goldman Sachs O ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number: 001-40154 ____________________________________________________________ Oscar Health, Inc. (Exact name of registrant as specified in its charter) | Delaware | ____________________________________________________________ | 46-1315570 | | -- ...

Oscar Health, Inc. Second Quarter 2022 Earnings Presentation August 11, 2022 HIOSCAR.COM Safe Harbor Statement and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including direct and assumed po ...

Oscar Health, Inc. First Quarter 2022 Earnings Presentation May 10, 2022 HIOSCAR.COM Safe Harbor Statement and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including direct and assumed policy ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission File Number: 001-40154 ____________________________________________________________ Oscar Health, Inc. (Exact nam ...

Oscar Health Inc. (NYSE:OSCR) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Mario Schlosser - Co-Founder and CEO Cornelia Miller - VP-Corporate Development and IR Scott Blackley - CFO Conference Call Participants Ricky Goldwasser - Morgan Stanley Stephen Baxter - Wells Fargo Jonathan Yong - Credit Suisse Gary Taylor - Cowen Joshua Raskin - Nephron Research Nathan Rich - Goldman Sachs Operator Good afternoon. My name is Christian and I will be your conference operator for toda ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) Oscar Health is a technology-driven health insurer offering diverse plans and monetizing its platform, with significant membership growth - Oscar is the first health insurer built on a full-stack technology platform, offering Individual, Small Group, and Medicare Advantage plans[29](index=29&type=chunk)[33](index=33&type=chunk) - As of January 31, 2022, Oscar served over **one million members** across 22 states and 607 counties[30](index=30&type=chunk)[33](index=33&type=chunk) - The company launched **+Oscar** in April 2021 to monetize its technology platform, generating fee-based and potential risk-sharing revenue[31](index=31&type=chunk) [Our Offerings](index=7&type=section&id=Our%20Offerings) Oscar offers Individual, Small Group, and Medicare Advantage plans, plus its +Oscar platform for external clients - Offers health plans in **Individual, Small Group, and Medicare Advantage** markets[33](index=33&type=chunk) - Individual and Small Group plans are sold on and off ACA exchanges, with premiums subject to regulatory approval and risk adjustment[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Medicare Advantage plans receive a fixed **PMPM premium from CMS**, adjusted for Star ratings and member health status[38](index=38&type=chunk) - The **+Oscar platform** provides technology and services to clients, generating fee-based income and risk-sharing revenue, with clients including Cigna and Health First Health Plans[39](index=39&type=chunk) [Membership](index=8&type=section&id=Membership) Total membership grew significantly to **598,169** in 2021, with Florida, California, and Texas as key states Membership by Offering (as of Dec 31) | Offering | 2021 | 2020 | | :--- | :--- | :--- | | Individual and Small Group | 577,799 | 400,120 | | Medicare Advantage | 3,864 | 1,924 | | Cigna + Oscar | 16,506 | — | | **Total** | **598,169** | **402,044** | Membership by State (Top 3, as of Dec 31) | State | 2021 | 2020 | | :--- | :--- | :--- | | Florida | 291,894 | 115,171 | | California | 98,532 | 103,834 | | Texas | 90,369 | 93,164 | - For the year ended December 31, 2021, **$2.5 billion** of direct policy premiums were collected from CMS, compared to **$911.6 million** collected directly from members[43](index=43&type=chunk) [Government Regulation](index=14&type=section&id=Government%20Regulation) Oscar's operations are subject to extensive federal and state regulations, including CMS, ACA, data privacy, and fraud laws - The company is subject to comprehensive oversight from **CMS** for its Medicare Advantage plans, regulating payments, benefit design, marketing, and quality assurance[80](index=80&type=chunk) - State insurance laws impose restrictions and require health insurance subsidiaries to meet statutory **risk-based capital (RBC) requirements**, which all subsidiaries met as of December 31, 2021[85](index=85&type=chunk)[86](index=86&type=chunk) - The **ACA mandates minimum Medical Loss Ratios (MLR)** of 80% for Individual/Small Group and 85% for Medicare Advantage, requiring premium rebates if not met[91](index=91&type=chunk)[93](index=93&type=chunk) - The company must comply with numerous data privacy and security regulations, including **HIPAA, CCPA, and NYDFS Cybersecurity Requirements**[94](index=94&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - As a recipient of federal funds, Oscar is subject to fraud, waste, and abuse laws, including the **False Claims Act (FCA)**, which can lead to significant penalties and government audits[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including historical losses, regulatory changes, technology reliance, and internal control weaknesses - The company has a history of losses, with an accumulated deficit of **$2.0 billion** as of December 31, 2021, and may not achieve future profitability[126](index=126&type=chunk) - A significant portion of revenue is derived from **ACA-regulated health plans**, making the business highly sensitive to changes or challenges to the ACA[133](index=133&type=chunk) - The **dual-class stock structure** concentrates **82.8% of voting power** with Thrive Capital and Co-Founders, limiting other stockholders' influence[253](index=253&type=chunk) - A **material weakness** in internal control over financial reporting related to IT general controls was identified as of December 31, 2021[290](index=290&type=chunk) [Properties](index=51&type=section&id=Item%202.%20Properties) The company leases its corporate headquarters in New York, NY, and additional offices in Tempe, AZ, and Los Angeles, CA - Corporate headquarters are leased in New York, NY, with additional leased offices in Tempe, AZ, and Los Angeles, CA[297](index=297&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ongoing regulatory reviews and ordinary course legal proceedings, with no material impact expected - The company is subject to ongoing reviews by regulatory authorities regarding business practices, which can result in fines or sanctions[298](index=298&type=chunk) - Oscar is involved in ordinary course legal proceedings, including class actions and claims from members and providers, but does not believe any pending matters will have a material effect[299](index=299&type=chunk)[301](index=301&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Class A common stock began trading on NYSE in March 2021; no public market for Class B; no cash dividends anticipated - Class A common stock began trading on the **NYSE** under the symbol **"OSCR"** on March 3, 2021[304](index=304&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future, citing the need to fund business growth[306](index=306&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Oscar Health saw significant membership growth and premium increases in 2021, but net loss widened due to higher claims Financial Results Summary (in thousands) | | Year Ended Dec 31, 2021 | Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Premiums before ceded reinsurance | $2,712,988 | $1,672,339 | | Premiums earned | $1,831,020 | $455,035 | | Total revenue | $1,838,715 | $462,801 | | Net loss | $(571,426) | $(406,825) | Key Operating and Non-GAAP Metrics | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Members | 598,169 | 402,044 | | Medical Loss Ratio | 88.9% | 84.7% | | InsuranceCo Combined Ratio | 110.7% | 110.8% | | Adjusted EBITDA (in thousands) | $(429,826) | $(402,447) | [Results of Operations](index=64&type=section&id=Results%20of%20Operations) In 2021, total revenue increased significantly to **$1.84 billion**, but net loss widened due to higher claims and expenses - Premiums before ceded reinsurance increased by **62% to $2.7 billion** in 2021, driven by higher membership and plan shifts[375](index=375&type=chunk) - Reinsurance premiums ceded decreased by **28% to $882.0 million** in 2021, due to a lower average quota share cession rate[376](index=376&type=chunk) - Claims incurred, net, increased by **425% to $1.6 billion**, due to higher membership, increased COVID-19 and non-COVID-19 costs, and decreased quota share reinsurance[377](index=377&type=chunk) - General and administrative expenses increased **59% to $265.1 million**, attributed to headcount growth for partnerships, technology, and public company costs[379](index=379&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) Oscar manages liquidity at subsidiary and holding company levels, with strong capital and recently raised **$305 million** via notes - As of December 31, 2021, health insurance subsidiaries held **$1.8 billion** in cash and investments, while Holdco held **$738.6 million**[384](index=384&type=chunk)[387](index=387&type=chunk) - The combined statutory capital and surplus of insurance subsidiaries was **$474.8 million** at year-end 2021, exceeding minimum requirements[386](index=386&type=chunk) - In March 2021, the company repaid its Term Loan Facility using IPO proceeds, with no outstanding borrowings under its **$200 million Revolving Credit Facility** as of December 31, 2021[392](index=392&type=chunk)[395](index=395&type=chunk) - In February 2022, the company issued **$305 million** in **7.25% Convertible Senior Notes** due 2031[400](index=400&type=chunk) [Critical Accounting Policies and Estimates](index=69&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Benefits Payable, including IBNR, is a critical accounting estimate determined by actuarial methods and completion factors - Benefits payable, which includes **IBNR**, is a critical accounting estimate based on actuarial methods, historical claim patterns, and medical cost trends[418](index=418&type=chunk)[419](index=419&type=chunk) - **Completion factors** are the most significant factor in developing the benefits payable estimate[421](index=421&type=chunk) Sensitivity of Benefits Payable to Changes in Completion Factors (as of Dec 31, 2021) | Change in Estimate | Increase (Decrease) in Benefits Payable (in thousands) | | :--- | :--- | | (1.00)% | $49,075 | | (0.50)% | $24,414 | | 0.50% | $(24,171) | | 1.00% | $(48,103) | [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements and the auditor's report, highlighting critical audit matters for Benefits Payable and Risk Adjustment Transfer Payable Consolidated Balance Sheet Highlights (in thousands) | | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$3,321,650** | **$2,272,106** | | Cash and cash equivalents | $1,103,995 | $826,326 | | Total Investments | $1,431,562 | $692,127 | | **Total Liabilities** | **$1,929,128** | **$1,823,088** | | Benefits payable | $513,582 | $311,914 | | Risk adjustment transfer payable | $794,398 | $716,370 | | **Total Stockholders' Equity** | **$1,392,522** | **$(1,295,893)** | Consolidated Statement of Operations Highlights (in thousands) | | Year Ended Dec 31, 2021 | Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Total revenue | $1,838,715 | $462,801 | | Claims incurred, net | $1,623,995 | $309,353 | | Total operating expenses | $2,383,196 | $865,067 | | **Net loss** | **$(571,426)** | **$(406,825)** | - The independent auditor's report identified two critical audit matters: valuation of **IBNR Benefits Payable** and **Risk Adjustment Transfer Payable** under the ACA[438](index=438&type=chunk)[440](index=440&type=chunk)[443](index=443&type=chunk) [Controls and Procedures](index=112&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of December 31, 2021, due to a material weakness in IT general controls - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2021[623](index=623&type=chunk) - A **material weakness** was identified in internal control over financial reporting related to IT general controls, specifically concerning program change management, user access controls, and program development controls[626](index=626&type=chunk)[627](index=627&type=chunk) - A remediation plan to enhance IT control processes was initiated in **Q1 2022**[630](index=630&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=115&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 proxy statement - Information is incorporated by reference from the **2022 Annual Meeting of Stockholders proxy statement**[639](index=639&type=chunk) [Executive Compensation](index=115&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2022 Annual Meeting of Stockholders proxy statement - Information is incorporated by reference from the **2022 Annual Meeting of Stockholders proxy statement**[640](index=640&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=115&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized under equity compensation plans; other information is incorporated by reference Securities Authorized for Issuance Under Equity Compensation Plans (as of Dec 31, 2021) | Plan Category | Securities to be Issued Upon Exercise | Weighted Average Exercise Price | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 50,437,276 | $10.29 | 11,576,494 | [Certain Relationships and Related Transactions, and Director Independence](index=115&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2022 proxy statement - Information is incorporated by reference from the **2022 Annual Meeting of Stockholders proxy statement**[645](index=645&type=chunk) [Principal Accountant Fees and Services](index=115&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2022 proxy statement - Information is incorporated by reference from the **2022 Annual Meeting of Stockholders proxy statement**[646](index=646&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=116&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the 10-K, including Schedule I - The financial statements required by this item are listed in **Part II, Item 8**[648](index=648&type=chunk) - **Schedule I, Condensed Financial Information of the Parent Company**, is included; other schedules are omitted[649](index=649&type=chunk)

Oscar Health, Inc. Fourth Quarter and Full Year 2021 Earnings Presentation February 10, 2022 HIOSCAR.COM Safe Harbor Statement and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including direc ...

Oscar Health Inc. (NYSE:OSCR) Q4 2021 Earnings Conference Call February 10, 2022 5:00 PM ET Company Participants Mario Schlosser – Co-Founder and Chief Executive Officer Cornelia Miller – Vice President-Corporate Development and Investor Relations Scott Blackley – Chief Financial Officer Conference Call Participants Marianne Scott – Scott Health Consulting Ricky Goldwasser – Morgan Stanley Adam Ronn – Bank of America Stephen Baxter – Wells Fargo Jonathan Yong – Credit Suisse Josh Raskin – Nephron Nathan Ric ...