Oscar Health (OSCR) 12 Aug 222022 Q2 Earnings call transcript

Good afternoon. My name is Christian and I will be your conference operator today. At this time, I would like to welcome everyone to Oscar Health 2022 Second Quarter Conference Call. All lines have been placed on you to prevent any background noise. 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

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

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

system made us. you clients and Oscar Thank more you, joining our is before. affordable more And In of products for second I'm have of quarter, the and a for update proud have Hello, progress across the our Cornelia. than the provide everyone, healthcare we Today, and continued making thank this year, ever more members our more to and so accessible many. priorities. build serving on healthcare we're we an are excited to number how momentum across

and growth, full we first track, know, we the for in X.X deliver quarter As of the the doubled terms remain And size in year results even this you nearly from are year of with dramatic this half in we our to membership. premiums direct Today, for XXXX. report second confidents guidance our of ability to billion XXX% increased the our on year-over-year that assume policy and year. on

XX in points basis Our of medical quarter, decrease XX.X% loss ratio was a year-over-year. the

which full and outlook. on our of year-over-year, positioned the our basis from in scale improved expense points we adjusted back We deliver seeing are meaningful ratio, year to are year half entering the XXX our well admin operating leverage

Looking individual first at business. our

sell In X out Net with particularly now the see like addition these Net we profitability X.X% you now first or even the ACA past XX a we we insurance insurance quarter. of our Promoter where cover scale, growth supporting our Promoter Florida, Scores, and overall in roughly to industry-leading this of And our million We focused As has reach market of increased XXXX. XX%. in and Score year, continue have one the approximately share In significant large been we states on this lives, where score is individual over plans, roughly the XX know, to in increase our meaningfully to business membership year, every the half markets. team in have our base in of the scale ACA a specific serve regions, initiatives members.

an and care features lowering of the We impressive operational platform on a our the focused I'd number to of give product have this. efficiency. few developed you members improving for majority cost examples total and enhancements like with for

start call are we use we them me use These our use designed fully with to care clinical in our of outcomes. and digital case what our our outreach We journeys. teams. our improve Let virtual management them care campaigns Oscar automated expanded in

screenings fully required about resulted about a screening to higher those cancer of year-over-year. for leverages primary automated prompt One integration XX% journeys, care EMR has three adherence metrics in which providers

some doing process impact about tech improvements and also of implementing. to we improvements We what managed common same care the that talk vein organization. issues address are In we've the been

out-of-network longitudinal the For we work for is have they successfully our refactored this provide we holistic to transferred and year. about far system of so transfers the care, with coordination support to need members to of in-network our all facilities. temper example, transferring improve XX% designed from have members This

that the reduced the issues and that's member we satisfaction costs Finally, one provider a another healthcare for cost example many in experience call process. a and total care improve of generally improve overall of medical great is process

treatment affected procedural invasive condition. overall an increased is the And detect treatment of increasing getting or uterine recently treatment And new of approval a utilization the of and of the awareness of protocol. we is treatment overflowing occurs recently population due a fibroids that a costs. to process, with that utilization outdated issue saw There constantly we FDA older. So less

these member campaigns, we up And order in claims care utilization, To communication, example to products quickly shows company. everything the tech-driven the all for our were campaigns modify a and insurance digital something this from including cost how outcomes quickly to so for on great able to focus able total of and that logic to members. improve to a wholesome like is provide impact drive of be down do

We are to also pushing replacement ahead administrative claim payment the and system including improve strategic vendors. efficiency projects, improvements our to accuracy of some continued

are pricing an margin subsidies enhanced increase that we to have for in we The in look our the business. the expect ahead ACA individual we average As assumed prioritizing single-digits plans, submitted XXXX we and high XXXX, expansion are accepted. rate

we and the understand market, very ACA nature these we think the that of local areas. years of well, XX rating in this about we individual market Now including are many

while maintaining competitive So and XXXX. our key market on margin focused is markets in pricing a for expansion, position nuanced

C+O, year of is small group milestone, with the reached we For have our up to year-over-year. which a the growth. we Recently, XX,XXX products first XXx had strong respect half particularly member

We look continue markets, to the expand to our we have the we are there. announce And and on hear on about the to brand into product that there, presence positive from excited Philadelphia market strong unique X/X/XXXX. developed forward we collectively building starting feedback we plan to

primary more We care also look into for markets. offering the book growing virtual and to our XXXX across forward

are our Oscar, how platform, further prioritizing provide resources. I'll expanding update technology fact, on our me ask let In we an on

substantial increase serve we as resources on First, enrollments the earlier, have dramatic open the infrastructure insurance membership during importantly, we focusing enhancing been said and in our to to company towards in most profitability drive I achieved XXXX.

integration post-launch resolution challenges of this the at devoted resources Health and Second, First that complexity to we experiencing are the implementation potential the a have comprehensive due scale. to of we

Now, remain Plus will full-service business. demands committed in to months. the two not Oscar given and deals resources, certainly our implementation these we for Plus We XX next the pursue Oscar

we that see risk other that take organizations reinforces do ongoing also Plus but to increasingly Our market our Oscar looking as deliver cycle, providers offerings. Software-as-a-Service lower offerings these issued Not involve sales deliver to modular on more our players deliver these to engagements typically in value offering value can the more meaningful only with a modularized and are and decision to solutions. doing

So, actively development campaign the forward first modular Plus of and Oscar with we moving our products. builder, are the sale

Here progressing are conversations well. with prospective clients are

adding the feedback. externalization, also prepares based team features, on technology for market the we are As important

recently which any the to only services priority time messages next highest rates. a launched given at feature, we conversion best action members Specifically, to improve

of from have in members launched, with Oscar of a XX, engaged future. the will campaign As rates almost benefit expect we builder of XX% our the new engagement campaign features and clients similarly

as subsidies a to to I'd XXXX. you enhanced Act individual impact Scott, the market an I to and spend With to pass we Reduction and Inflation includes talking XXXX. the regulatory pleased call like that are could Now, legislative extension about turn to for subsidies, size in landscape see ACA additional the the moment total know, to over that regard before the

that well beyond will will extended whether that the October, redeterminations, the expect We and regards October of next of the in the the as predict XXXX. pass enhanced or occur we redeterminations the package in emergency that subsidies Medicaid public majority continue is years. in to With few regardless for health House will

believe over Medicaid we in the our expanding year. With for a to that, should call glitch, combination these Importantly, potential addressing an have with ACA the XXXX included I'll Scott. items, next for markets be pricing. family assumption a tailwind redeterminations We an in turn to

everyone. Mario, you, Thank afternoon, good and

results quarter execution across second solid our businesses. Our show

through by XXXX plan through the the of approximately we modest member half of year, were positively we is second are in and business. ended full with our members, our books favorable an Net of quarter our We rates lapse and compared and year-over-year, to increase driven the the group year months In first have experience. against reiterating million churn We historical guidance. our delivered the enrollment our XX% individual special adds. predominantly first small had six growth X quarter, trending

premiums increased $X.X and to and year-over-year policy plans. silver driven towards premium XXX% Second shifts higher quarter membership business direct higher assumed mix by billion,

Turning to medical costs.

was driven care. cost ratio roughly XX.X% of medical basis costs, an XX by was quarter, improvement initiatives lower at the This COVID in net year-over-year. loss actions, reducing Our pricing improvement points targeted and the of total

first last year to XXXX, which unfavorable related million, prior those We the offset a include the $XX we favorable of offsets of to XXXX from believe PPD development which million was and development this $XX to periods. year On had of current issues we've was also drivers partially million quarter favorable prior compared year-to-date by a related driven are this amount period prior Key to was year. lower risk adjustment. by favorable the which which year, had versus basis, specific development significant related quarter that approximately to quarter, and $XX favorable negative some development XXXX net are

We that COVID utilization. saw to direct costs quarter-over-quarter. Turning and year-over-year down were

COVID current the what we has on wave in our based data, believe Importantly, seeing peaked. are we

been this slightly second our half XXXX, the Regarding non-COVID members special effectively COVID was expect I far of quarter, as our we also costs. the from performance SEP open Compared be year-over-year has performance. we enrollment. want with to consistent which in offset which tailwind other who in utilization, enrollment that via it to anticipate the the MLR below members a XXXX we XXXX new MLR retained in lower expected, note baseline period to thus members of year, we our to

into administrative Looking costs.

that efficiencies. an quarter greater basis second variable from expense is administrative notable, the which leverage operating company improvement our fixed cost XXX to and year-over-year. insurance on points business. continue cost given expense ratio to increased we administrative improved by make year-over-year, leverage scale improvement Our the driven of ratio, in XX.X%, of was adjusted basis our scale fact XX XXXX investments Besides This the meet points

of on the controllable managing ensure focused our into is are second our with going year tightly XXXX half costs profit in targets. we aligned expense Importantly, to our base the

company basis, equally ratio companies. reflecting and the by ratio, combined our insurance was medical combined On that insurance ratio year-to-date improvements XX.X%, expense points ratio across ratio year-over-year consolidated which XX driven an company MLR is mentioned. the insurance sum profit basis and overall the of in improvement administrative the of quarter, loss Our and roughly expense a our the administrative our a is previously XXX.X% I

by EBITDA quarter was but $XX XXX was XXXX as last a adjusted loss from which Our of million points improved percentage premiums basis year. higher second $XX reinsurance before year-over-year, million ceded

our of are cash the balance our total results cash of cash the we the at and billion we at the At to investments $X.X metrics At of forecast company $XXX second guidance to across next million at the quarter, $X statutory of insurance including subsidiaries, all years excess on we for over We and another our billion half, investments, the couple parent we Turning $XXX in the the believe including sheet. under are quarter are $XXX XXXX. our capital. with reaffirming our million subsidiaries. well of investments of million and Based for this had our capital date ended of for capitalized point, plan. end

Our and turn we us insurance for and that, results plans, in with our the me let it XXXX. quarter line back company second groundwork year-to-date are believe in With Mario. profitability to to lay achieve

thanks like joining to call Scott, you all few I'd for to of and reiterating key points. Thanks, close our by today. a

are momentum We full drafting year in the I'm two our quarters, off strong first our guidance. achieving and

And lot has track a very, pricing and by plan our in to that our are cost our We XXXX, of year. due admin by and with hard work by insurance our initiatives efficiency work. disciplined profitability very to on driven been focused in achieve medical this business management strategy, our

thank dedication we'll the and It's that this Oscar So of that, would turn to portion like I makes their Q&A the to With it the operator employees. over for all call. tenacity possible. the

Thank your you. [Operator Instructions] with question line first of Hall Michael from Morgan the Stanley. comes And

Your open. line is

Thank you, Hey. guys.

And how this Curious, on adjustment that impact update up settled update on MLR Thanks. adjustment assumptions? risk payable did of your of weighted your risk out? much prior any quarter. risk-adjustment report, know analysis I a given XXXX you risk went transfer million also, how just question, could First XXXX payables about performance? $XXX it your your your adjustment

Yes.

you PPD risk give an with Let and of me adjustment. happened what just overview

the report Wakely. for first CMS got both the -- XXXX and the received we got final XXXX, we quarter, also the in we report So quarter from

And two primary adjustments. things said, which of quarter. up the million so, our drove those development. were prior things drivers favorable quarter, And total, we And two really came approximately, the of into are as the ended period a of in $XX with lot there that I

we book, in mainly came and hitting last processes development we And the a related risk to and other used $X of year, that and is we saw that likely specific we that, that With then markets about the it really have to didn't unfavorable pretty were think of happened a-third consistent then attributable risk really, factor unfavorable actual confident on really XXXX adjustment your from that about We performance that's of what the estimates. and half positive our we it there. too that of I the question, And in related development. off, and newer market to so reporting But, on items we looks bit focus And in proxies picture, estimates up, XXXX is dynamic had our dynamics. two-thirds adverse that there. on pretty we development, First deterioration just way. to puts that were to And and related year-to-date had to your there adjustments SEP of like quarter adjustment $XX that on many XXXX, risk our estimates significant XXXX. pull And very to much the some we probably and $X development, million risk there have tune some to was XXXX. other consistent that about then, challenging. in were that overall, to takes Wakely. $XX really from adjustment was mentioned that, back smaller the of think markets. to is build favorable then got is million. with offsetting sicker, to claims million pretty positive primarily related And second market basis, executing that adjustment, you was kind versus markets, those is of in growth that a were And was slightly got better some of And that big a where million to

market's having doing. You're what the for adjustments to and estimates make

in we this see that process. pretty a good we confirms volatility think the actually So we have area, that

Got then just Scott. it. one helpful. really And more. That's Thanks,

new two about the full one you've given deals for a in As longer pass we I you're no past, year, changed service, the Curious, to months, think a one effort. think Like XX all? two you're but modularization target? Plus mentioned to and impact out how deals next has SaaS at about your does the original deal also pursuing pipeline, year that Oscar but rolling that

out been yes, The modularization getting the can the perception So, market the is about for there we call offering It's the we've as we out earnings really quarterly talked the one at and That's in great now. builder in this now. XX be in being past well. Investor from getting Day campaign for last of us the to consistently actually market. question see months what

And of there, time of we as had really generally, big can growth so clients -- as a of implementation and want existing said in over let's the large do another obviously, shorter because we execution we for shoulder XX exactly, cycle to full-service number higher deal. expect we support because sales a not we next there, said, a the and you months,

is kind to a and in the take to their Now of overall, a a we And much can still that the the think, towards up connect difficult taking more systems see reaffirming shift engagement. towards besides health ours member day way risk risk, shoring very trends on very in folks We targets. helps and modern it from good is are much get as plans. health there and hospitals alive continued think and I marketplace, infrastructure

to very the so be negotiating. out marketplace much continue and in there And

and XXXX beyond. already I so point, this on about at deals, think And full-service these we're talking

Thank it. you, Got guys.

Securities. of with Your from the next Wells line question Fargo Baxter Stephen comes

Your is line open.

that. XX-months, a means six I I push deals the to of long XX-month months did expanding you place, would just pipeline, kind first time late heard out into you about elongated And hear guess horizon-wise there. process the XX wanted could what on say of first, just just horizon, is just a launch think you talk that Hi, getting let XXXX, months, reviewers [indiscernible] exactly issue? the there the clarifying XXXX me I I follow-up more why the on I you little challenges. a taking expand But I on about guess, what on potentially then, to thought Yes. you consummate even bit new said another questions either that the probably couple given what more thanks. the maybe like feel full of service revenue in see wise as

I just So, then want have understand I issues to much maybe these and follow-up. a better

the with the comment start challenges. made me Let launch on

we also and after the not They're book complex you told as So full last launch. challenging. quarter, are migrations done

in priority making result What clients clients, we're work a taking as necessarily resources service near additional the progress the sure and to about talked we done we we thoughtful integration in middle really of term. ourselves by months of new implementation. for full there. sure we're overextending So, we through a the the the will as recommit now support And of being really and make We're there that, it's us, right. to on good is do It's we're working not making refining but for wanted seven support there. new

think start in future time and follow of And where into XXXX, Now, launching implementation that service have an to continue focus incredible to give that with given use get the talk opportunity grew years book -- of in a in bigger the on in profitability we the we given costs, that And yields. a we in XX want driver then we are this and to means at implementations, the we we built continue become prudent some the now marketplace, show there importantly, XX XXXX becomes that in terms insurance And on will chance implementations food the primary make we is are really to the thing impact that, marketplace. is conversations in more much experience. internal even that to this on infrastructure can to right lead healthcare but such -- really that that, getting doing bigger member internal just of rights, here work. to we point, cases, already to have that's most out sure is now, efforts, full how ourselves big company about the months, because we and to do many And that the past of business might to actually campaign our be the get an to we that

Okay.

Yong Credit Suisse. comes next line of Your from Jonathan the with question

Your open. line is

question. Hi, thanks for taking the

Florida, question with you like your Just been of guess does your achieving markets a does bit high that you have key of in the membership on see bolus be of in this a large will out. This compare come in, dynamics some pricing line result But averages in to single-digit a did comment. national of seem profitability how coming InsureCo? if XXXX and the the in I

Yes. for the thanks Jonathan, question.

really in the at players pull there. we're a that overall, we laser-focused we've players And of kind mentioned, players, the made pricing very price on was seeing XXXX competitive you in from high the including of that So landscape we digits market, more which there. seen, said, who there's as end in and on single back the upper on be we other increases market it's kind the were seem be rate margin to just of in expansion. market. seem other is average, And as prioritizing our on And coming understand to then more large by what hand, aggressive nuanced region the If look experienced the increases. some have competitive what But the to region you go I to really it also is just comment would really picture a ballpark doing. where were many that, of

just that take the priced think overall be expansion. us, margin in positioned up with to And to that. goal point We're most well with think of at then I experienced deliver that obtaining is this we the appear we so, that our those the for market have pricing And cycle.

Okay. on then the... just Great. And

of from comes the Fischbeck Bank with question next of Your line Kevin America.

When go guess addition a guys I want than the rather Oscar back couple it of to the thing. plus replacement Thanks. questions. over like it a you this outlined strategy, to Great. change in an I XX was first next I guess seemed months.

earnings progress focus and to how how you think different? the the as or from I So XX versus profitability. something trying the doing implications you delay? switch? like Just of I of make to because question. making a going what's sound you health months at So, for selling sound want X-year But want is financing understand this have to I all? models understand we comment. doing you the launches? about since should we full-scale you're much how first it that to better initial things does Just it understand from on on unveiled that appreciate versus of kind was next the think not not the Like I didn't in cost sure like liquidity guess, how this change stop is also, that. But But should then about going the it might

Yes.

that and have share experience market even by changed one changed. towards product focus These exactly [indiscernible] one, an we there. hasn't in and we all remain our healthcare to on tech before, we hasn't regards shift What Let fit, entry of alive. bigger particularly I broad That's called are conversations think while players opportunity, the the ago think this. our landscape. market trends me in opportunity I risk I mentioned start need to number in what a that changing with

of second The has thing changed the is strategy. long-term Oscar importance not

member we've if for affordable, well. got use that is want achieve you day at next year So in in, material proof a in as on make competition of can and that's business to it our a we're give we rebuild that think, full now additional exciting so [indiscernible] is and and the be pause to Oscar we healthcare the the points is software meantime, experience. was critical about the I targets -- technology to exciting I overtime. and time to as -- were also, scaling for that that here through profitability focus infrastructure infrastructure The most got to for build. me, point a insurance is and the [indiscernible] getting client these second, on just Again, excited. think conversations less. they in lot And And clients. And prospective here. so ourselves the shorter Oscar serving that's cycle builder, reinforced on in is earn on we sure sales more be look mentioned, We've trying proof conversations We we that's to modern clients. don't and we us make implementations business we there, certainly to for continue we existing plus delivering to these a and XX out takeaway set component as build I footprint is, members campaign ultimately more will believe And coprofitability let continue which service unlock the months continue well. the we really can

question kind targeting of, company on, of don't would I impact delivering profitable getting your more to and that cash is liquidity. of of we thereafter. in just total most profitable say, decisions continue these first to on on kind The all, Yes, I then company that Kevin. of important speak the the And and on in XXXX insurance be profitability XXXX. component Why

the towards originally than EBITDA our spend to I us the And one you modularization opportunity. the get to be slower our we deliver believe might then say, would so builder then on resources levels. little I question bit how objective. services as we very to And is need say grow what time, profitability. and to allocation, might move our XX the will also we're most help of if follow. we'll careful We still of there's about focused is will that, there's important an insurance to levers profitability, And holding that about But able to significant a, that expected. the think look be would depending secondly, company company be opportunity So and that -- managing actually putting trajectory profitable campaign over that resource other our we think had just

So those help are really XXXX. profitability or getting be company the in going us think insurance drive components to that total I to able -- to are

question line from with Raskin Research. next Your comes of Nephron Josh the

line open. Your is

go thanks. the next for Hi, back and expectations pricing year. wanted to I just to

talked varies But think next consistent year, single-digit by market. sounds So market. you dramatically I which probably the overall, about the you high think, your with point to pricing is Scott,

guess, interested cetera. trying before the -- market? the specifically, competitive positioning? you relative based for been guys grow your on pricing actions contract really be to taken, like on And Oscar's think to you I thoughts hear figure you've to with the think what I So do you I'd finalized, about that, the And but more or market, things which for does that overall mean just have on that glitch a growth expectations talking overall et views subsidies getting family and out

start us the I it's that look, XXXX. giving too be to any appreciate on for question. I'll Well, off saying by Josh. just Yes, early guidance

when on on, this on that feedback growth the extension the market to the that to-date. and point the we're So we saw you've marketplace or some hand, got give the programs going of in from at just really anticipating in what's supporting for what And you look one of I SAT, period step of directional any time. back I'm going at not type

can we Family be continued the tailwind a are also that's expand going retermination Those market. Gitch. Medicare so to and And things that think

may terms and a So the date. give ourselves you for our some XXXX. pricing in more we in combination think market positions and to us come XXXX we'll of on a we larger you going back later updates But of in see where guidance well

ask and about you Josh, market and want Scott the what I to overall pricing, relate there. said

think the a I saying for while market be also the we've been will that overall the we high-single-digits. increases for think in

I've something that is predict is of think, players that we go. I prior of So extensions price the And we earlier, about reaffirm came that understanding said there, something rotation, this good including more, thing ourselves that have when want to subsidy one the probably to So if we markets don't the is is is years, to we aggressively. in nowadays see I requirements want and X.X% under-price after of we in or like have were of or see, to try experienced XX that the an different eight states Texas see roughly to market, seen try because that. who we think some certain I able some is price and now, it's more chase there in in some across maybe painfully Scott What how filing sometimes states market some some go up have people That that, where latest, like different so. would the of back operates is last right? ones to learned what the to

there And turn cards how so said. confident we we as and over as see comes we'll towards more in And pricing pricing the region feel October, we're out September very and

of line the from comes question Lindsay next Golub, Goldman Your Sachs.

Your open. is line

question. the for Thanks Hi.

might growth if I'd Thank disciplined towards go the to the then more to also how high-teens think fit profitability? you. market how any we markets And you hear And positioning, the thinking just hear, might plan about you're about how are pricing that again. areas targeted to more to then approaching there mid-XXs into you're compare to as Just just where maintain to making design? and back investments, the competitors? work revenue love

I of think, is the superpowers company. the Yeah. Plan design, insurance of one

I every or it us we where truly first the area there. And believe for we could process early for not, And have be plan that's design more fact, for how next week, we a actually XXXX. so start innovative I in creative meeting things. it's even been wish doing where, an year,

care new plan things We yet we're in taking have too markets. of primary for a doing go into yet, out designs just I there because about don't remarks, we're number come much detail example, the similar as into but I – hasn't this year. all that to our want virtual talked prepared

out of things constantly We – in in around plan member one incentives are support. rewards rolling that demographics is designs some we particular are all And of think the certain have kinds about and places. kind and around our specialized states we of

done very we where so some are think And I areas work. those interesting have

XXXX plan expect both actually, and there, you was been And lot do as well, about might have terms repeating do growth cooked have question to can future the the second next us forward couple for in think I of question. actually your in that you we real mind had when question Scott, or impact loss a ratio up has the design come out and that And certainly work more – a second of weeks. improvements. in your also state

can me ask wanted hear I to – how you right? all just

can. We Yes.

Thank you.

how the on positioning Just I disciplined to and wanted XXXX, ask maintain markets. your pricing of more for some

high-teens targeted you growth work profitability? as to since mid-XXs So, your revenue towards

say of lands, pricing outlook we the an XXXX. just know going where that appreciate the XXXX to going I market folks all to And certainly that's that, book we is we again on margin And that we for us give I'm are above I that, reason to early on it put lead prioritizing supportive do to think the profitability. is and but the in lots. interested too that be be you in the where question, our Yeah. expansion will believe in And path in that

Thank you.

follow-up We have Baxter Wells Securities. with a Stephen Fargo from question

Your line is open.

of follow-up couple on. a just Hey, Yes. quick

how build like you guess get Just to larger, terms by on I in -- market It pricing seems make get you impact meaningful I range pool? you but to the just the And like is you inside seems assuming a could they're built under that I guess, how when timing? it they guess of Medicaid risk redetermination of and comfortable the start say outlook, your pretty do the when pricing, the impact Thanks. What that really you there? much outcomes with items. the the that open are

some got It's Yes. takes. puts and

the some it have SEP That's way more like impact that more XXXX, one like middle factors a in the will question. when risk has the had it same there year, this that got prior that. consider to the risk enrollment come, this adjustment of that in nothing membership one hand, So impact you -- on the we comes scores, on consider the SEP the two one given things in

to quickly now are members in As right Then states the is emergency there's public health scheduled expire a Medicaid will there start October. ACA. we moving the said into limitation, how to

we in is -- it the better so think, And SEP generally phenomenon. the earlier RA the this for therefore, year that happens, I

market, the this opinions, The is out hey, upward to story. built a one trend population. as going least that in short pricing. different and mobility mean, be in have That's the MLR is than other mobility an we actually say, ACA the the at study I've what factor there's book. of And seen generally in I the better And is this

and it's our different We and higher in what of have drift in expect an also this done but combination of therefore, RA to have that's upward to that's generally markets, likely mobility different SEP, there. kind view been we pricing,

on will Now last came say months members prior that are here. trends similar made similar SEP outcomes. that fact that And similar essentially in any obviously, these results underscore we segment the which in these members the months year, -- this MLR who is to generally and MLR and seven I we just be year periods, managed we open this enrollment this utilization we win those -- the patterns now members therefore, cost can who for calls, towards six in six, and came utilization point see

hope are when to think, a It to is membership good a I we market. that so will it be, the business. a year, enroll them will in we continue we to sure retain the of be then MLR membership the make have next whenever and they to bit the long-term that market, in stability this will so there support this And overall members of coming thing generally,

really so And about we this. think how that's

then, like the quick just Thanks. amount. company me, ratio, half back it a looks one for ratio ramps up adjusted admin G&A one And implied Okay. last decent total

in are? it's a two what half company think between actual than the we should we admin insurance is think drivers year, I of thinking Thanks. actually, ratio. difference decent about trends about the more what the be back those the amount When the

there, kind I of insurance fourth historically, appreciate with maybe would seen anticipate and company that And question. third the the in see an we'll we would the where admin expense, in company seasonal I in Yeah. the have less the guess quarter. would I And company. insurance ramp increase I insurance -- start a

ramp we going our the that of we're are doing support what of to when we And on about that investments modestly going expect for based work is in have quarter, kind line seen I but with really experienced on would on that this up think in doing clients. be that aren't investments support Holdco year. that of more our year, quarter I then, we think that last year prior I that and the year to making sticky. I just what we're -- the the saw the last that's we'll So we -- to positioned would fourth what were would necessarily think see it's are year. we're we where is ramp the what's that expect scale versus up, scale. This phenomena then some the better fourth about that in when the infrastructure our item And those and expect I we And one versus there in we there, think in

And so continue look to Holdco drive efficiency we'll to and overtime.

questions I There call to presenters. back at would turn like are to this the our further time. no over

good constant Yeah. Thanks your And Thanks the much dedication. so will call. much the Thanks for see and we work again. on and you coverage for questions soon.

Quarter Oscar XXXX today's Call. concludes Conference This Health's Second

You may now disconnect.