Oscar Health (OSCR) 11 May 222022 Q1 Earnings call transcript

Good afternoon. My name is Christian and I will be your conference operator for today’s call. At this time, I would like to welcome everyone to Oscar Health 2022 First Quarter Conference Call. At this time all participants are on listen-only mode. After the speakers ‘ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like of it Relations, Corporate the now Miller, to to Vice conference. President Development to would over turn Cornelia begin I and Investor

to for that statements Harbor with of subsequent Private Form meaning future us by can which the details the everyone. forward-looking Christian important of call, be events and Schlosser, other afternoon’s anticipates and as that within where those the about call, ended results this forward-looking can host Oscar’s quarter. will Actual on Executive discussed and XXXX. on may Litigation Safe Investor website in the Full the from Securities trajectories XXXX Officer, Chief our you be of based those period through good our results you ir.hioscar.com. the change. share first on additional available our estimates differ filed Officer, are afternoon remarks Co-Founder Relations statements about statements Blackley, Oscar the Thank in which may constitute for Relations of XXXX and and XX-K those report also makes factors Investor various result earnings are we’ll Financial accessed results with Oscar’s the XX, of release, as materially the joining annual Oscar and today. Mario website our found of for results December our earnings Any in our indicated quarter management the and Such SEC first Chief at Thank at Scott company commentary our annual under the ir.hioscar.com. filings Reform SEC. current cause expectations forward-looking a provisions including Act developments

update which A on of turn measures, With directly to company’s any will is Mario to Relations to available comparable to Investor non-GAAP these the at so. be fourth the measures. GAAP to most our found would the ir.hioscar.com. we in future, over call to in release, elect CEO, some the may reconciliation obligation certain call our like at also specifically statements press these Schlosser. can refer disclaim that, forward-looking I XXXX point company do the While quarter website This measures

Good afternoon Great Thanks for thank and everybody you joining Cornelia. us. intro.

usual, into our results for we with XXXX. look first As the quarter provide you will a today of financial

of last month risk at consumerization, our the investor business few want in We more about believe U.S. day. and Before more more well we into themes and technology why want on is increased get U.S. years have evolving built system to you shifts the sharing, adoption. towards to heard think the build you The from that, I And system. we have positioned I Oscar us roughly X.X% past or including the remind seen a coverage we the healthcare healthcare where offer in Oscar that accessible is a in are of regions lives this for confident X.X is XX% affordable our we share And members all. ability more every market XX across more well markets. healthcare platform, this and roughly overall on to positioned capitalize one deliver of we making roughly on vision ACA year. approximately now towards shift. million In to serves this our

range growth ratio have. that up product different improvements the offering clear at indicator and growth of in are That’s the of same we that six XX% the small individual value membership and members with loss period into time that’s of our individual the Digitally markets. retention the in XXX% net high XX% promoter we time view importantly the and year year-over-year premiums renewal consumers are expecting saw as And Oscar see to group of the meaningful medical approximately by and quarter likely ending First XX. more year-over-year in a and by score our driven all we primarily who members full XX% continues up We are quarter members with contract renew are percentage the year. points our XX% engaged for of an first C+O plus stay the at after the to us. kind for stay to climb their

that that our cost of has members, shifting a silver cost, members. been We use is inflation more cohort more with our see to quality we members quarter are particularly the Oscar options router our high compared members higher As find see other XX direct mobility, where to and engagements first proportion more to towards percentage to impactful. critical higher ability care the important goods of silver a in low and points rising, to our is given even even care likely our book

membership between For small growth with Membership see across the a chassis the fits and of quarter of driven quarter the ability of strategy increases for ended XXXXX product meet we more members the quarter employers. to the our well. We group continue doubles all needs our network of eight states. our including expansion to products, markets. market dual fourth monthly This strong XXXX is with first as strong our by XXXX C+O nearly than growth of across the small largely and

engagements. to are C+O of part due seeing we members a earlier, levels rates high a mentioned retention and distributors with digital high in I As

Looking next members And ACA million took XX becoming overall for a million elimination years up north get Medicaid family it maturity. market MA the in pushing market now. to including that has the Spending year. compared think members of regulatory and some similar have XX.X the a healthcare. is glitch, nearly stage that we for U.S. mean XX just ACA market the of more a ahead million XX of XX market market approximately redeterminations years changes, to force at dynamics, Medicare reached of would to potential comparison Advantage the dominant the individual

experience think that’s in how know the in revolution competitive where quiet thrive such to matter. a affordability cost we we driven, U.S. continue healthcare company a change to And consumer game. a that will As and markets

execution. focus year, on For continue the rest of this to we

insurance strategic business, Turning for first in our XXXX. our insurance priorities are targeting Oscar to profitability we for

expect margins to our growth Second, in a improve we And we technology potential. our to care drive and power the down of membership. of aim drive term total market finally, by to cost the above long harnessing

is me profitability market these. are give our pricing drive One Let of market few and dynamics this year know in ‘XX you pricing year. you over strategy for for our each expansion. with we a examples contemplates Starting lever trends emphasizing planned exogenous as growth

variable the technology as our obtain focused as team addition, cost. cost towards to manual leveraging processes, using reduce is In on efficiency scale well to our greater unit driving the

members. X% example, For XX% without an And impacts automate inbound we about opportunities automation we today, our think meaningful increase messages have we experience. of inbound at this from member responses our to to messaging least of to

expand accounts ourselves looking continued operating have we’re XXXX to we care the guides and heading and we that ways at growth. fixed as resource to know of growth expect call a XX% also Additionally, through top leverage costs about to members additional into line digital people those a achieve

cost down executing savings. on In total are cost medical key we care, for areas several terms of driving of

to thereby program For communications providers management utilization and focus automated more extending manual management, for management we issues. are care intervention the on decisioning need reducing our for our and complex utilization clinicians allowing

management’s population to campaigns care unclosing continue our on focus also payment integrity on and health and formulary We gaps.

these providers are adherence XX virtual using medication care members by looking plans. retention, drug who growth more balancing to of finally diabetic we profitability. their Oscar seeing primary screenings primary with one the offering a care our control are likely this platform also Members example, % compared XX% virtual For $X primary at see get where to virtual generic roughly focused eyes group. care and on And our

we the of new and example, and our primary virtual care. For care cost offering expanding influence given on are markets states to total

potential ability coming we the were achieve when Our in offering. product plan price leveraging periods, together of the above the parts enrollment growth lowest multiple is last of result not the Oscar factors most in market the the open of to differentiated even

focus had are modifying good performance those by mix us products. markets portfolio we’ve win. some and And year into this on and can to such growth MLR our in markets we tremendous confidence had opportunity by on trend we we’ve give fullest focused the Now and where

quarter, to we in the markets Arkansas These relatively are as us made throughout Colorado seamless continuing XXXX. states the to year withdraw system planned decision from membership we the the small the This intend as while the and to and these marketplaces service for exist for provide year. possible, make to

less now being XXX,XXX despite to in than lives a we Plus Turning the served. approximately Oscar, have client market year

within efficient, this generate million XX to these million based expect will in fee year. revenue We clients capital XX

priorities We Plus for strategic Oscar. have three

with migration challenging leveraging well, the to health plans. and continue first and The optimize our Health migrations in implementation are forward are expansion we First First complex Health to our first We with from for First. supporting book learnings clients implemented gaining efforts full partnership the Health plans serve four These existing is to look XXXX. and strategy book ongoing we health we

adding in our have and talked our to as market is a highly a here campaigns up ability externalized insurer Second, solution of as quickly. offerings we very to a that new we campaign to, we our modularized software workflows engaging as about service the builder first our are news selling are success the the secrets in already one is spin

workflows XX% increase offering roughly expand in software bookings business a XX% drive as because visits visits order a business service our in our are margins. rotated company. this run and designed build tool and continuing interventions service to these we hundreds amassed of finally, per _. solution for interventions both or over take a providers. appointment mix launch plans tested. moreover points other scheduled be to driving now large I one and a wellness insurer to And concurrently deliver the steps deliver increase meaningful is now increase base And example, full Plus outcomes, a and technology look time solution engagement and Oscar to The a in one dashboards we’re powerful multiple of the solution, builder in contents behavior by risk personalized in to And time campaigns shop toolkits They knowledge for with as in a and can as reduction This differentiated with base membership when self engagements worlds automates programs scalable, to to we rates. a campaigns a campaigns own risk. that our improving service teams our can risk with efficiency. at campaign non-technical member XX% Clients stop growth For can enables to solution toolkits manage drive regional clinical be it right the We touch for have campaign change. the resulted and health are results. And external besides platform bearing annual offering of processes towards campaigns now to we of and

SaaS are will like an onto software Moreover, saying tooling Our our solution a that prospective clients and easy faster they allow integration yields largely are a platform. for solutions.

prioritize of some to where had consumers few care as that want a this examples. mention And them Outbound all We’ve XX% have and guides, particular share score to of outreach lets stack, flows also intervention of and minutes, tasks. admin updates the easier to went lot process. important a These result exciting the the margins. That’s not expect manual and on are line by remain aggregate an tech examples than in provider provider us underlying turn a provider it to we driven more and made we strategic hours in improvements as engineering change to infrastructure, provider for have but improve quarter for and data our in priorities. rather ongoing led this the because from just launches that always tightly update better. are rosters So facilities. tasks from few We need elimination plus everywhere a for I data the efficiency, quarter this how helping roasters data. those our well. merges clear router member by batch well. to that interaction this the product to tech continuously, now statements to And a updates individuals seems launched our And down arrive us priority facilities like built a we it of systems, dispositions make we for just one commitment us for in to Deep the we in we’re steadfast core rank coming our sure place campaigns in highest

the view bring accelerating step path for Oscar, markets And the and on with these of positioning term continuing growth So I’d quarter across we that, U.S. in insurance the the Scott. company insurance a like to near to positive first profitability objectives. Plus towards for the as increase penetration results

and numbers, our But few Mario Tonight, out Thank takeaways. jumped results. going I’m I I’ll quarter you, everyone. through before good a call XXXX to walk first evening, key into the

top We and continue increase momentum to see scale. line meaningful

expectations. with Our XXXX scale first XXXX. as our us to stone XXXX over line a with quarter second. company And and growth execution profitability results were we’re to optimize in focused our And margin finally, largely in enables insurance in our a on members, million pricing first for stepping

and Turning ended increase our rate to and by the exceed In higher retention of business. driven the with C+O growth membership year-over-year million books modestly expectations XX%. results, in and growth an predominantly by driven effectuation approximately of our rate the we quarter first a a XX% members X.X individual quarter

increased higher to premiums mix premium towards Silver business year-over-year policy and shifts assume XXX% driven and direct membership billion quarter plans. by X.X higher First

now year. XX% coverage XXX represent share our Note in we XXXX. XXXX. quarter mix overall last XXX% beginning from increased of our into the is agreements XXXX This rate Premiums in total XX% quota XX% XX% members entered the additional that to up of silver reinsurance as million. increasing first year-over-year earned of from Specifically to an of

the contracts reinsurance year existing we reduce claims premiums of medical had our in reinsurers For accounting that for as we and interest. proportional last our

item. net accounting impact cost included share For quota our arrangement our of treaties, in terms new where reinsurance the required the different other line is insurance the economic

for Our the XX-Q accounting details about arrangements. will these have more

first company administrative insurance XX.X%, expense operating year-over-year the were was efficiencies offset ‘XX and as by was ratio Scale basis first in costs. points of ratio higher which expense our variable quarter was distribution which quarter flat quarter. XXX administrative roughly Our drove leverage adjusted XX.X% benefits improvement in

a admin We quarter. modest with in flatter expect ratios the the be will year fourth the uptick throughout

with with XX.X% ratio mix Turning the The more in to in silver dramatic increase. medical XX% was towards we year shift has These designs benefit around was than flatter lower of increase an overall medical the our deductibles be of to been our which loss largely in basis line seasonality year-over-year richer expect less Therefore, throughout historically. it costs, members XXX have MLR the seasonality. our quarter, resulting points drove members expectations.

silver risk In members’ transfer increase offset morbidity results members higher have addition, by silver Bronze versus in a the lower claims. generally members, and adjustment in higher

increases the period neutral period attributable than impacts numerator to which is year-over-year; this net While than COVID. it development relative denominator. The by offset due the last MLR more to the remaining on prior favorable was favorable the bottom year-over-year variance me, impact and line, year, which the MLR excuse was was development of prior to by more to offset adverse

claims lower quarter. saw the non-COVID a that trend offset some moment COVID on for in basis In first fewer we treatment. a by Net infection high spend and related utilization the me seen in per from continue lower year-over-year member with are of costs have COVID rates, utilization periods level COVID on we severity and driven lower of Let trends. variant, COVID resulting Omicron

the Our company, loss expense medical the overall combined was sum ratio, which of of insurance an administrative ratio in XXX basis year-over-year XX.X% increase ratio is in points quarter, primarily the driven MLR. by our the

just to higher Our percent EBITDA a adjusted XX first of premiums, X.X% last year-over-year. it million from ‘XX X.X% loss was million X But improved year. as quarter of down

another that of we our including parent ended of cash quarter cash X.X to XXX open the the the total and first the growth. our a cash insurance of and and premium subsidiaries up, is billion silver our morbidity After It’s was the investments to Turning required company investments making to this changes parent with membership fund were population members. at primary excludes our at determinations. our Rolling turn higher no that, our related cash finally, the Medicaid expected. our quarter slightly back reminder, million is insurance profile sheet, associated in less changes, balance effects me with we’re and outlook. to billion of In X.X seeing including guidance book, enrollment membership prior regulatory with XXXX the With years, quarter with Compared quarter, larger result as capital a rate higher we line as a a it seasonality in the and quarterly to over subsidiaries. in Mario. resumption roughly results with use results in from investments any and should let first we’re expectations,

things trying members are we’re of back and move well breaking These Scott. and times is XXXX. ensures serve continue us yet out it the to record on in towards Always a serve you, certainly keep to growth, great. our Thank very clients complex complex for market well, there simple profitability

against about away direction describes doing from company We our are those of solutions overly more the us the and more further that own into value. is move is stack. the believe healthcare we that We build moving of system and with to individualized, backdrop all years long the that point technology a become more strategy digital chose markets. insurance to that in ago and an positioning. healthcare apart solidifying sets our And And

for a and tech along work makes service the far is to thank quite company serve all their that them. for members team it. of clients. wait And I so place and we’re the to a special members Oscar a now cannot and milestone, by and leveraging do to profitably we what is our in is We’re people Oscar we’re members, journey powered want to tireless me

for we’ll Q&A the of call. to operator over turn with portion Now the that, the

Instructions] Stanley. is Goldwasser from question first Ricky Your Morgan [Operator from

open. Your line is

couple thank details. on And for questions evening. Good here A MLR. all Hi, Yes. and you Mario of Scott. the

on give the prior them MLR Can new given members? existing of for seeing development. period this many you the members versus what of MLR that context that some boarded there’s more You is it you’re on you silver us broke that so and by of year

Yes.

the to One group I on So MLR, comment our added of side levels And membership saw SEP were those MLR of is very SEP the coming first of this same of confidence membership we in we of very high over year joining expected, with two XXXX. regards what that that us those with we observations. would of really us Then the with again, year and the that came what make been over we last retention is expecting members came to this that which on. gives as the kind was with of the we as and closely would trajectory about have performed seen aligned the members. rest again, members rest

new think a sort you new the then skewed the sense given have that’s we that seems the of members? MLR MLR with Do on just this about of towards kind year. associated And the like as members to mix those you boarded more be now of

again, literally their our previously think added say -- we what is the came Yes had that’s had same the same. would the that anticipate that be that are I would as MLR members SEP going that in is in members I we to I the that to that be going

just maybe in focused a you terms active on of Oscar can the like you’ve, about what and kind are of Plus of Okay, Recently, kind you the Plus you’ve ask are more you pipeline? taken and most great, role in thank Mario, you. what efforts, sort to And like, discuss have of seeing then Oscar. leading

all that an coming engagements, of lots on do of road, seeing going the we’re occupy in in towards thing what interest get be able the again, out And lots to builder thinking modules. to It’s hearing folks rebuild, the little than that SaaS shift clearly first other the our talked this module. interests we’re moving SaaS to dinners was hot be make were to core smaller then over portfolio a about Investor essentially to systems, for towards and to really already on. value the is sales in center solution, route continues how potential member, of will experience, modularizing can there there continue practices who’s of available to like that or that. that pandemic systems, you out now start larger clients and What how that the that. selling minds. to fantastic be there’s the this an And recognition paths, of plan case of we a our aging everybody’s those, our that first close we a sell about as proud the including so most builder of plan we before land but of have shorter Day conversations, bit out want at the is campaign and Yes. and full is, a clients the in with me our cycle or now that offerings Lots is start also expanse time campaign and member admin in if member selling and we’re We platform interest the

nerve, needs investor XXXX very the we’re on trend [Indiscernible] in and just and the is modularization longer a the So pipeline, hitting clients terms the for are they we’re in think day, sales alive, is cycles, pushing for there. still, we’re in said, but as opportunities market side, I real the the the happening the in much of I on what’s fulfilling in various real, meantime, there who’s

people for I think, looking that. what very So out feels stay what’s very there describing for. and in going are everything we’ve is much like how on tuned been alive But much

you. Thank Great.

next from Your Stephen Wells is question Baxter from Fargo.

is open. line Your

be But your your that. these on would ask, expanded thanks. seems year further membership profile I guess to get an like should wanted the and to to as these to to get of how on I reason probability the with relative stand was that good trying we balance perspective exposure ACA could about to in I extended. in Hi, And then risk expanded subsidies. this of just we hoping starts think guess think update subsidies. about risk. the just I fits your it’s book? give mean, on membership they’d or you Obviously versus the subsidies I us first, this I overall

Yes.

consent take So it’s this. but me risks well. Maybe about membership the more the let the called here first as of part

me bigger a there. picture bit draw Let of a

We’re enrollments. now at record ACA

It’s historically million XX.X XXXX. think wants from to I when high. increase

is I you cost real think for that reduced the came last market there increased. signs couple days the a through saw ACA working, low of trends the now of all lot and Those a societal and out good couple things that law rates the years, of The ago. are uninsured healthcare system overall.

the I lot So been important Currently, lame take process, kind an it think in states where the on. the the it’s is the is that think overall, subsidies providers, means the will given example, we happened in take best a particularly a undo ACA. those works for just before members session of for lot my of always as last in for subsidies. for clearly now what And political good so duck and system in entitlement healthcare see a think really years Texas, the that irrationality guess. that would but have to my the that Florida, way, of some that point couple whether be extend of works That way It’s that to seen it’s people. the be other shall found them end will starting a found of the year, political they’ll be would irrationality I

And so starting that’s my points.

range subsidies. from about to membership, probably XX% a decrease a Now, XX% to the go were of away, in if purely they

maybe well. you you’d that’s I’d to there to change include out isn’t Medicaid look at have However, could remind glitch, as to there And next year, net. like the redetermination other family membership things Medicaid fix the the that that happen capital before net

the All things in other those very of pushed direction. much

not why at all there things moment these these sitting saying the And is so do that how we’re outs. net

there But impact are base and cohorts the and saying, and great members you we’ve at take him membership three that’s membership, difference lot product who hey, the came to basically up. go membership to of where see they’ll nets the work. who were all out, the And I’ll echo on take different therefore, Scott of MLR things lot in like new of we starting year, We we’re the last as the said, members after, in mostly it’s characteristics. MLR all a nodes, between a and differences they slightly got don’t not a and moments plan that’s have that how signed there’s

slightly population. when come that about they somewhat preventative have have other used words, year you’ve I we the they them basically seems come SEP to that talked population, we this same now is time observed a else when against utilization came everybody have true. And last at higher, that preventative overhang goes them, in. they in higher utilization small MLR coming got that see thing, population that last back for in at in. to is when which as somewhat one So they reason be away higher the utilization The ER they it where be to

or of more management MLR ER there can suggests And still else suggested really you slightly just the throw is we off but sort utilization to book to certainly add? that on do. that. is not cohort want higher, up it early was that enough that on on So like the catching we’re Scott it that and Anything the

it. I No, think covered you

Okay. progression than past. just the than little And a SG&A seen bit it then year in like we’ve secondary be one question this might here looks different the

think closer starting ramp year. the of And years, a to and you’re kind more midpoint. previous out in I throughout of you’ve much seen then the

for genius thinking the of guys year, parts you the seasonality and how of you. balance the us about remind this Just moving are what some are for Thank that.

the Steve. question, Thanks Yes. for

a co-admin the things couple I that to insurer So with would out ratio respect there. call

kind our of scale. quarter more had that two notch variable going the higher expenses saw in we quarter, seasonality. each And of that talked book would of of operating would via we would in got in of see and just kind from about, see driver specific What pretty offset say results including on to to on then we’re things, probably amounts net the seasonality a with then and first now to I the other. and I’m going leverage admin hand, there efficiencies really on specifically that just year that that is expense really we’re question that and was kind other business of came the the And I your drove terms the say one expecting expenses. the why On that based membership QX. I hand, year-over-year those there, the broker flat levels we’ve I of ratio modestly slight of less for flat most that we expect that into saw And distribution cost brokers, up

So think that lower we that seasonality should book. in I do see that

Your from Suisse. Jonathan is next question from Credit Yong

is line is Yong Jonathan your Your line open. open.

hear you can me? Hi,

We can.

There go. we Okay.

Sorry the XXXX? wasn’t into you to that. reorient think guys that load enhanced G&A guess a of like just there. how But are subsidies, the goal about if to would overall heading subsidies will extended, ensure enhanced maintain the about be you assuming the co-profitability sounds the I of be it in as it I guess pricing that lift much

market changes, the these without even by it’s all if the Yes would and net pushing saying Medicaid again, things let over glitch we I me not smaller redetermination, that, start out and these to family direction. clear me that subsidies. I the mean, will start are things, other get

not they worried too we’re are. So

committed, as to second we is thing said next profitability we company insurance The remain totally year.

in of terms of to need we the kind there? have… we do do levers what Now, So

and see not all those extent Yes. you’re insurance able regulatory would going members. say factors entities. depending shifts is, these might different of up out, capitalized members, that I how going away, think play are that couple already those we what of we’ve on to the to subsidized we’re pick a if Certainly, our subsidies to have Look, I

respect So a that would of from be flow favorable cash with capital kind to and perspective.

On bit the of also be that scale other we for a would purposes would side We then backwards of going on it up. fixed picked scale. our that, reduce little

guy. a would bad be that So certainly

comment into that these family glitch to book. on into so ‘XX, variable are of to for would able control be see or half able membership our that think the any was the comes of on then significant that going we’re costs wouldn’t along into an group. of side I the administrative company risks whether I things. would the make adjustments to ‘XX able were insurance we we other ledger. of in costs, think of There or membership costs amount the size variable redetermination, just for price the out to increase I roughly ratio side fact able those of variable going our with And to the the in and We where within the be pull it

has predict be but could expect would headwind emergency we we following certainly redetermination, tailwind been would difficult that of into that, a see ‘XX depending those pacing to to ‘XX be a have year. on that the to end, and the think high we exactly Certainly, healthcare members that pacing would come the as at retention saw it’s when the if potential tailwind Medicaid a depending the us. in, real for I so ‘XX in on might

regulatory I of thing from obviously view, well. mind is a add this regulators on Final as may is point

pricing lot use in the timelines with there’s the of in figure exactly we out of regulars And we there’s work to that process so could there. have what some, a terms

this thought is not Thanks. any utilizing guess to I possibly it this not then the XXXX? kind an knowledge guess that? the with extended, over And I heading specifically, there end members and into of great. is enhanced sticking in thought of the the benefits if insurance expectation or given of subsidies have there guess, that they was for year just their I Okay, may is year

for I so shift loading XXXX and the kind bit historical similar on whatsoever it I you not in the do takeaway read the was this would mean, and do is way here. XXXX of experience year actually, month of which the that is the argue little with be that members CMS happened guideline a surely, every to single And publications and fantastic. necessarily sort what would

big not setback those a did see we So, impact days. in

huge a think concern. not bunch it’s I we’re hypothetical behind be would together. But of now whole here multiplied a point studies starting that are my So

right about concerned now. we’re something really not So

Next from Taylor question Cowen. is from Gary

open. line Your is

million two afternoon. I in we’ll And Hi, mentioned, mean, was the of in see a question Could numbers. on I the quantify think about PYD the good you quick a just in since $X XQ the then there few curious, questions Mario I quarter? ‘XX. days had here. queue in had numbers adverse you it But Scott. positive a marketplace I was for for

Yes.

year on total In dollars year unfavorable un-favorability related current the was of in year-over-year by over terms that year of the primary development, in it quarter. XX XX million, million to

that and was what part, your question? So that’s the remind the second of quantification

was question numbers second think getting EBITDA? My the represent? other What’s quarter it. back the was added in X.XXX. expense That that That’s I to

later back That what answer, to is. give that send I’m the call honestly know Cornelia I off to you you the my the top one, head of because don’t to going after

level changes Mario, standardized talking marketplace, you a about standardized then the finalized offer plan the offerings. while to a success with have of metal rules ACA innovation thinking of just think And rating plan? ACA in your area lot the where you you every in potential sort a at had every I you non guys are offer how about Okay. of we’re plan to where have some

constitute this burden it at offer those incremental does do all? you dynamic able the to be the not in market changes think So administrative to material and an competitive are

that away. is plans of the Yes, thing go the ability in marketplace the having other good doesn’t

So I lot there. have putting a is important lot that and a designs think And interesting we flexibility ability, still of you’re out there. of really

let regulation, a there It’s benefit smart flow creativity designs personally and already and is states a obviously, constrained finding in there, have way. always really better the don’t more that where thing. the in there I more great is but ability in good think better to a Some that for more

is away. an glad So It that interesting doesn’t change. that taken get

is, I whether to generally I as great huge market don’t I have be whatever. think it or it’s say going would a to not, opinion for or the

say can more whatever have don’t I our change to is these and go I more things plan And we out a more what to because think relates with and own easily good that us as design price item configure exactly systems, thing it often mean. will and and act quickly. any generally we generally, directly, for would to a vendor

that I like. So part

interesting see going what in the back means to platinum things gold it to And means. that will probably what working can see you that marketplace. more bet it’ll plants we’re we’re it. that through have I there those to be And be think are

Now, they latest what CMS the relative a to about rule was before. not talked had of that much surprise

through committees had pricing systems the pricing week. therefore, every time go on in it’s all there to So the we’re already for it. it’s of season, I pay middle we think and working And

fair? from additional it’s maintain to just area. distance, that But administrative clear in this not and costs a many trading like Is plans material more offer each

mean, we benefits No, the two when and said better have side, based running reasons why states from But being I the are leaving we’re talk definitely of one that’s states that’s systems marks. we subscale, is burden by about reasons in side of one administrative more to approx comes the and fair. it to and we’re we which there. on

have lot flexibility. of a We

question next is Joshua Raskin from from Your Research. Nephron

Your line is open.

thanks. Hi,

premiums, quick deposit one, the a clarification accounting change first seated in I book. on the the shift to just the So new just for understand

seated, cash flow, certainly and year right, did I no the being right. on assume and impact I Scott, EBITDA of on has this XX% assume I that So it’s nothing accounting premiums hear

Yes.

XX% accounting, then look is presentation premiums it’s treatment so right, it affect how there first call new quarter. XX%. line EBITDA, just coverage you’re adjusted rate, treaties it’s when that through is is at really effective of the the the item, right, line. basically, the as see to around you’re kind running So there using not you’ll and seated deposit doesn’t amount you of no the going And bottom into you thing, on translates reinsurance which impact through of what we’ll is overall, be accounting, And for we’re the of that difference kind reinsurance on the the one said, in the that is

maybe with on side, coming weaves don’t you’re leverage that curious then I’m any into Plus starting if well. And this just know better are opportunities manage engagement, Yes. a to about lot conversations thinking in the as up differently or about as if medical you working you But new totality, how you Oscar working to the member I with are management how providers get providers? Oscar heard specifically grow but specifically? We’ve costs? membership providers then are and with

Yes.

risk provider shift on and the the So there. side, towards

have We partners. contracts health that both several dollars arrangements, with flowing certainly are system standing level value physician this groups with we systems. in is record at and terms with right health of year long to a based care now And

those towards word and one risk, are shifting We’re negotiation.

way as the butter think confidence the are votes make would that want fact that a wouldn’t have providers? at in everything. at we bread I do nice And the can rest and a the flows go happening say. and So But of managing run How now, data level things MLR that operations right we a I now with lot that. of It’s we to a can I we good level also that’s in and terms through that’s well. in and reasonable like good sure a risk we

more have on on. key get we We internal there. management lots of and One when to And terms lot a a the then talk or months, right provider or lot small well, mentioned product I of things of of work easily want of attribution data, can day, campaign from now oftentimes we a partners. that we new golden spin we [Indiscernible]. to you’re of boring to readily of system customized of the up up an builder actually the running sharing flow, kind to changes a close in health campaign the that with as in but that what in those mentored very that next has where things in providers do. so system how was as the so are today the just quarter orchestration basics the about That’s within we places so data earlier variety one have the PCP but six us remarks that attribution the risk campaigns ideal nine them. a any and really months in campaign line driving do ran we one with get not of PCP last case, based all really think them data maybe I In brushed a can truths bit and the that with things we about more help out is that value whatever, and

you to and you attribute a but super if provider for search into new renew go prescription way your float router, will PCB, your there, like the if the it’s your magically small things provider you go that. now that’ll the in top easy where an example, care to app For and in

this very stuff, this you push together. a plus It’s it’s we if under testing of delivering that all PC provider simple kind a So falls kinds one that lot more call networks of and value layer, clients, internally for into take ground good very, point all things. of care sharing, well a the and attributionfor of data data general from rubric in as those better better or pushing

incenting providers upside talk And downside of to based only risk? Mario, about cost management? care, you value with help to stuff when you sided Are talking about you talking value, type you two but your about do are upside

today mean, then that really this percentages value our this That’s year, with is value But yes, I care of health do take really, upside, on I’m with upside you it’s negotiating level I everything downside. to in of care, win whatever mean, based the systems see when based if large. the a like Yes, upside pretty we’re downside, risk. I contract

today’s ladies from will come And Sachs. All be for Goldman right. last and this from Rich question the will gentlemen, And call. it Nathan

Your open. is line

highlighted thanks you Great, Mario, exit question. two for the decision markets. to the

premium just a EBITDA what the standpoint. said standpoint? to understand markets hadn’t those potential And so process at you the the in maybe talk there, of the future? is material company remediate talked markets? gotten from looking you into then evaluating you maybe other scale Could see additional markets I the about two you from I at Arkansas day. about think you not are decision exit And to to analyst in about a where exit those and markets markets just Colorado. talk decision material an and Can went those

Nathan. those existing in on side Let of really me just the the, financial small. jump They market from have, they’re

is a the of P&L a have whether material just don’t from that’s the statutory we from the even do, effect. close that benefit or that There to reporting perspective, reducing to in we compliance have do, to overhang So significant we have a they to have though, or work do. amount

right small So really and reduces just really where allows where we us we the towards. when a It there energies have is to to to distraction, benefit. on our and focus want put

in win right now markets see yet. these therefore, right. exactly for like sort really don’t a did commercial will to made to leaning that the number terms a and can think to were made see fact changes we that of we a decision we to a we a great top recent have makes or a And that now have us systems, are also we about work But save do the the the were we regulatory But factors, of speaking, they both that day. other at just changes, those to to working markets. of you’re bad those win products for like than us doing were about not with different at in bit it exit we list. different the like, launch of say work think partner can they These and of have leading are that in because if didn’t markets need in are the on of sense regulatory get that. right We into decision great provider many of There Yes. just the talked would, things They a although so of immediate more changes it that markets to investor right decision us anything really where they withdraw, sense scale regulatory than through we don’t plenty buckets to starting our we relatively we rather we and a work bigger don’t didn’t markets are with that. the the path scale a right that goes

how year the should MLR on risk quick in the your a should when this. know of line you’ve like can kind four Okay, just be some adjustments in I exchange visibility And we won, kind talk mentioned just you’ve that year. for better about of feel just up. kind you you And with that maybe expect what profile this uncertainty executing of been membership impact follow on just sense. the makes being created on Scott, I expectations. market, the

Yes.

just for really So the we’re starting obviously, claims see the first through. And to quarter information. starting point data coming is getting

go report performance. in into second to you first terms that’s kind start you of quarter, of your As see outs the when

ups end first going around the and So terms need really, to estimates risk that be view that in to for characteristics second second we’ll what of good I the would expect get of make the see our we’re adjustment we June, true we anticipating the should at in any ‘XX. our half really right of quarter

great, Okay, thank you.

this Health’s for concludes Oscar Thank first call. participating. Ladies and you conference gentlemen, quarter

You may now disconnect.