Core Viewpoint - Investors are currently concerned about the healthcare industry, particularly health insurers like UnitedHealth Group, which have seen significant stock declines due to rising claims and medical costs. However, Oscar Health is positioned to return to profitability by 2026 despite current challenges [1][2]. Company Overview - Oscar Health is an emerging health insurer targeting the individual paying market, which has faced rising costs but is expected to benefit from long-term trends in the healthcare sector [2][4]. - The company has grown its customer base from 200,000 in 2019 to 2.1 million in the last year, leveraging a technology-driven approach to enhance customer experience [10]. Financial Performance - Oscar Health reported a quarterly operating loss of approximately $129 million due to increased medical loss ratios stemming from higher service usage [5]. - The company plans to increase health insurance plan prices by 28% in 2026 to address losses and aims to maintain $12 billion in premium revenue despite potential customer declines [8][12]. Market Dynamics - The expiration of COVID-19 related healthcare subsidies is expected to reduce the number of individuals purchasing insurance, impacting Oscar Health's customer base in the short term [6][7]. - Despite these challenges, the overall shift from employer-based to individual payers in the health insurance market presents a long-term growth opportunity for Oscar Health [9]. Investment Potential - Current market conditions suggest that investors are overly pessimistic about Oscar Health's future profitability, with a potential price-to-earnings ratio below 8 if the company achieves a 5% net income margin [11][13].