Oscar Health (OSCR) 8 Aug 232023 Q2 Earnings call transcript

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to Oscar Health's 2023 Second Quarter Earnings Conference Call. [Operator Instructions].

Thank you. the Development to and turn President Miller, now Corporate of Investor will conference Cornelia over Vice I Relations.

call where quarter details Thank Thank you, can execution Chief website Officer, Chief earnings and our second be our Bertolini, profitability. results, through be Sankaran, Oscar's ir.hioscar.com. Executive you everyone. our call, XXXX Oscar's will call. for at joining host management Relations Full this found website our path Financial in release, additional first at and and This ir.hioscar.com. available us for our of disciplined good half evening's we'll results discuss evening, Officer; Investor on Mark Sid strong are to which Relations our accessed commentary and Investor earnings can

that results those the discussed indicated for on provisions Private under XX-Q the to factors, the SEC, forward-looking and period June our future filings the quarterly period ended filed filed Any report the be Form makes the XX, various other with of XX-Q XX, Act for differ the Actual including those as SEC may on with about materially harbor those report important the constitute by in Form of quarterly including with March quarterly our XXXX, meaning safe XXXX, ended quarterly SEC. remarks forward-looking statements Oscar statements XXXX. a of result Reform Securities Litigation within from

cause that to are events statements change. current Such forward-looking may Oscar as based on estimates subsequent today. expectations and developments of anticipates

any the update point obligation future, disclaim these specifically While forward-looking the statements in to so. company to do some may we elect at

measures. the the directly available on refer measures be ir.hioscar.com. comparable most measures of website in the press also these at reconciliation will is A call found Relations which Investor company's to XXXX GAAP can certain quarter release, second non-GAAP The to

to turn over would the to I Mark CEO, With Bertolini. call that, like our

optimistic months feeling more X have discuss quarter in now by spent time few been me the now, across overview am I second our everyone. continuing my in company learnings let moments, over key at begin dives you, I my Oscar but will when even of just Good I a evening, I performance. joined deep and providing than Cornelia. April. an Thank have business. the my

a had we results and strong executing our quarter, We path our are profitability. demonstrate on to that

NPS key are favorable metrics our XX% high to in in point of record a of or quarter. this this All our plan line increased performing the year, at to and

our XX.X%, in by Our confidence first EBITDA strategy adjusted medical half EBITDA target next million, company million company loss to driven ratio consecutive quarter pricing care We adjusted our with and $XX our $XX of initiatives. and the year-over-year total disciplined cost for profitability increasing improved an points of of with adjusted total XXX basis for second year. EBITDA a reached total

in We walk a our of continue And year profitability Sid call. total more date. financial as to will view by to important us. later results encouraged next insurance company company our this for are very us profitability this we review year metrics detailed through milestones and

pricing to a As look margin and strategy maintain we we next growth expansion. believe to plan both we targets disciplined appropriately year, that

more breadth XXXX for rural deep the partnerships strategy growth leveraging expand to of our on provider Our focuses into areas.

meaningfully We our increase of area planning year. states, overall than service current are increase half next to more in TAM footprint our our would which

efforts. our side, waste in from and we increased have initiatives abuse PBM the margin of identified total the and benefits care including On areas fraud cost

product our providing cost our importantly, innovative administrative drive to to increased efficiencies overall scale expect and continue member are We savings further offerings affordable experience. we though, from Most our an and expanding from technology.

members conditions. are of introducing suffering diabetes around a from goal outcomes specific Plan members the example, better and specific for respiratory Available disease in COPD benefits our members targets and Breathe which For of we end clinical plan other following success COPD-related in plan state, markets with incentivize with Easy the our care. this driving and XXXX, reward lower will select cost of

being also developed features our serve membership our have an our to XX% base are Spanish-speaking mission, accessibility enhanced With we of who speaking. central Spanish of the better version to

consumer-focused an has well XX. resonated Our members, enjoy of and currently approach with we these NPS

continually best-in-class As believe we types we are and can strive to personalized help experience, competitive member features and of offerings industry-leading advantage the NPS these us deliver that enhance that our consumer-friendly scores. a

opportunities now time organization my some the met observations of deep to our strategic I market with operations have long-term our for been pricing greater Overall, days. XXX have critical Let our impressed of have the leaders where me into turn what business, spent digging and the and XXXX last see I and efficiency, across I positioning. of with I key over aspects position, including the have areas found.

XX-year we our invested Over our infrastructure in history, and operations. have

even operations for opportunities value in for but functions. scale, our rightsizing in I strides great core made our have more creation We see

For even of work and forward. place these already degree example, these been areas in underway is result, that efficiency adjustment. yielding processes and But even spend more time build greater further capabilities can impact. to for and have we enhance material going I risk plan strong a in has positive we There

strengths getting important fair of our upon build team, asset, our amount a Our expertise. understanding where seeing have and a most I of time we spent our and our better assessing can existing people are

priorities. of our bringing are the and forward, making build at execute leadership hires As us some we organization to look changes going better some we key enable to in on the strategic needs and

Sankaran, as have is Oscar. First, CFO, since discussed, our leaving we interim

to leadership, to very Board. as member I continuing our with his him a forward appreciative of of look and work are We

the position, conducted we As thorough very to look fill search. we external a

to clear became have role take we it However, person that on throughout the that already internally. the best process

share to welcoming role we August thrilled Blackley Scott to the effective of are are back We that CFO XX.

our Officer, overall a next spending time his we operational Builder product. on our on and Chief the Oscar business. Campaign targets Over track phase our of of efficiency our we Today, our to aligning building this and Transformation person out understands enhancing the XX is and are Scott months, as costs, key has last than seasoned focused nuances served no there leader our believe who for hit better revenues

be across time an I of As operations decades drive with transition, part continued as functions. spending team, to our will experience momentum operator more this bringing efficiency my and of key

run hires senior to institute business. +Oscar we bringing out expand are and strategy X an leader continue new leadership and our and round We also to our corporate ensure veteran management industry our a on processes; lead bench, to our to

during will be coming next starting hear days. closely They with them in individuals our weeks, during my Aetna so you I have the had call. the privilege will of working about earnings both more

are the me processes future. thinking spend I that embedding enable long-term our critical on a been we have Let efforts. moment strategic will about how planning

succession, built strategy multiyear approach. that expand improvements, part I cadence off focus a spend for rest to new year As tech on long-term multiyear laying driving +Oscar on continued process, plan reviewed management accelerating a this to our for met framework initiated performance. have strategy kick of road Board I our to our our map performance groundwork and and and modular will the the plan, the a meetings of work, of with the

have XXX,XXX have engagement with currently the seeing +Oscar, unique tool Campaign active and seeing positive to rates. in been clients. been respect we patients first results our With high have Builder We

our the XXXX, components continue half the forward expect like of We in bringing Campaign to to to momentum more look second and Builder modular market.

other tech among and into of many can road of Technology our maps. President our technology, Mario Technology his product settled Chief Officer, and into Speaking on focused has things, AI and how we role as is integrate

As like exceptionally we in AI. allows technological the proprietary shared to our us shifts our nimble to have response tech paradigm major in past, stack be

streamline ultimately opportunities provide identified further decision-making more administrative have million a enhance experience and X for to members. our processes, We personalized approximately capabilities

progress serve and on AI that that of in which in and dozens to use continue number the Builder large One members plan developed Campaign clinical months. a needs. intelligently cases signals prototypes deliver example better we leverages have language for features and is AI out interventions our Actions, relevant of models We rolling patients' made monitor to coming have

are you latest please hioscar.com/ai. If date in AI insights interested our to up on visit staying developments, and

we set strategic next through that to working of years. pillars will us the relates strategy, the initial are it As through few an guide long-term

drive First, sustainable margins expanding to profitability and market-leading we want through and operations. scalable

our Second, of we one continually member want our member key engagement and differentiators in believe is invest to that experience.

we diversify to power market. others Third, member-centric care our the I look current to that And more continue should externalize can individualized beyond will offerings believe we we platform system. our so our to finally, an leverage health to increasingly tech throughout approach

years. priorities the us for over I are believe these strategic the next several right

with And the to of view at a to next We you the that, like year. conference Sid? company will long-term call an with I share investor turn more Sid. over would detailed

and good everyone. evening, Mark, Thanks,

favorable Mark and our As churn quarter to pricing We the results show are our with consistent with with line plan. second members, was noted, quarter just our against ended in and is under our well expectations that executing million X the which business assumptions. we performing

been volume plan. of ahead the On has side, slightly membership

While in this have At now by Medicaid any has Medicaid healthier been offset new we are the eligible Florida are note indicates relative are this I'd exhibiting growth patterns. we that and prior data redeterminations. emerging point, enroll states. largely Early have year also resumed anti-selection had our expected again. all not redeterminations redeterminations members Medicaid limited of than in SEP that to this to periods,

than member history, average. a older the of As population. towards renewals portfolio has the I to ACA our successfully in similar closer which our looks overall any purposely resulted shifted very and recent noted have We our in that higher time an last strategy mix membership proportion now quarter, market

Shifting projected this resulted part a deliberate has of premiums a year. in lower strategy, as our transfer which been has of risk a percent mix

we grew risk by partially by and last our the insurance, premiums $X.X [indiscernible] direct $X.X premiums billion to and before which X% assumed modest were in year-over-year year-on-year impact increases. Similar driven billion. lower quarter, quarter, membership rate Our X% policy includes of the saw transfer, to trends decrease our a offset

medical costs. to Turning

due ratio initiatives. disciplined year-on-year pricing of Our medical cost care and to loss actions improved basis points XX.X% our XXX total to

claims overall expectations year. have in relative line trends to been our first pricing favorable slightly Our the of half to the for

performing Within below. assumptions. in trend, is to risk slightly higher shift our with We and and are scores service than are with materially categories, Rx expected mix our it includes this expectations, noted. Outpatients members line pleased pricing as with and professionals inpatient previously specific higher

and focus into driven Historically, younger we've by AI. market final risk a therefore have outperformance was adjustment payer been expectations, for pilot report the risk moment. had application on risk successful The large a the favorable me Let in adjustment program. a initiatives, including year's value adjustment healthier population CMS a than last our for and to average capture with

offset largely which benefit. IBNR, and accrual RADV the our strengthened we However,

risk mix, we lower updated the While weekly to in favorable report initial our for member our year expected came a due transfer expectations. to still this XXXX

partway that coming maintained risk Given which reevaluate our year, cautious are in appropriately we as have see data. to we an approach only we more through we the will adjustment the reserve, quarters

to costs. administrative Switching

improved XX.X%, basis vendor points basis Driven Our by year-on-year MLR XXX operating ratio benefits, and InsureCo XX.X%. combined XXX administrative InsureCo to to leverage. ratio distribution efficiencies admin by improved optimization, points and year-on-year expense driven our ratio the

expenses Our company in of of improvements operating XX.X% basis net another an in lower improved quarter drove total results million. investment due holdco admin strong EBITDA aforementioned Our ratio -- profitability adjusted the adjusted and administrative $XX with expense InsureCo to year-on-year of points XXX consecutive ratio, the higher

of EBITDA adjusted XXXX higher same is year. the $XXX than half first last million million $XX period nearly Our

very our seen with date throughout momentum of first and the results year. the we've to pleased half We are the

and of We quarter investments, the Shifting sheet. second at of to investments including million the cash ended cash $X.X parent. with $XXX balance the and billion

a from for benefit reminder, working off for we As a payable our large be and will quarter high investment the as cash wears year RA expect cash next both quarter. a second income watermark capital

lower year. expect and adjustment pay to projected continue the risk to risk August, throughout We the XXXX will in out XXXX build our transfer

remains capital strong. Our position very

our months our performance through positions $XXX million growth believe excess over of excess driven approximately first by allows time. surplus, and the position X solid opportunities additional capital million had optimize well We us and year. of to the subsidiaries operating capital, $XXX including us capital fund to capital Our future of

updates We expect on towards XXXX low first the Based our MLR encouraging to be few our are the results, XX% XX% our of a end making guidance. we now will range. half to

projected $XXX also to and adjusted MLR insurance income lower end our the Our higher is top company investment of million $XX range. to the million drive profit EBITDA to

million of end the Importantly, will a company anticipate loss EBITDA or we $XX total towards high our for the loss the be adjusted range at year.

for In in lay a first foundation confidence and year total results half next summary, company increase company year. great profitability insurance this our our achieving profitability

of progress to pleased are year. execute very the and to in positioned with how we We our date half the back are

our to look industry-leading well innovative the approach, to come. win we to As NPS future, sets and offerings us disciplined years we for believe up pricing many

say is to Transformation been like Scott, role his contributions in operating at I'd set with that team coming to have Officer Finally, real and back as experience and a Oscar for well up an finance wonderful The hands Chief privilege. a great us success. has

from we As noted, Scott on feeling on and have Mark, forward the seat the look Mark company's believe our strategy to I'm the goals. with and Board. about place I work people in rest the management right the to team to also optimistic plan, of my future incredibly and execute continuing

over for call Mark the turn to me let comments. that, final With

we've strong of had first half In Thanks, XXXX. Sid. a summary,

show delivering our meaningful Our business. execution across and impact results focus are discipline, that our

on expect profitability are key adjusted total our metrics achieve all EBITDA insurance with to company year XXXX. this We of and track profitability and in company

we we and XXXX. for environment. well that see individual capabilities We tailwinds our amidst the believe thriving to remainder to dynamic positions market its headwinds, us XXXX, the of which approach, believe As experience, is we than and consumer-focused us enable future, will more technology look that continue the

for to we the convenient health dedication like position people in to and continued the reason affordable, I and serve employees thank to would across the They for make are be accessible and more Oscar country. members their a our care focus. continue why

that, I'd to portion to the of With the our for Q&A call. the turn over call operator like

[Operator Instructions].

of comes Your line the first Fargo. from Wells from question Stephen Baxter

risk through EBITDA. on Just favorable, we the came commentary but to MLR this in have it XXXX to make of I sure the right. didn't take adjustment. you heard much

impact how that If us great. the P&L, translated on with through would just that you be could line, maybe either the help

weekly to to would read us. but revised quarter you're relative initial And on of your results confirm getting wait-and-see either on this of is a it XXXX, provided then just reflected taking confirm assumptions, been your that. initial or yet couple Could you approach hasn't from things the because the like sounds favorable that be that those full the you're approach a very just for you bit year guidance in helpful

Steve, for it's Sid questions. Thanks here. the

we our XXXX would for an by XXXX, on That final did articulate our submission. we as offset put favorability with was effectively around up XXXX, I being RADV. position claims. see on RA in somewhat First, accrual margin And that cautious to respect

did somewhat. top we So up IBNR the

XXXX, initial while transfer risk year. As early, in we I point that to did highlight than in say And was we you do would we had this anticipated at look submission it's weekly XXXX. the favorable the lower expect more

the amount weekly but And revisit data So emerges data, year. the we we small favorability. in in of relative did accrual and of coming our partial have process a into the we'll flow confidence more some the quarters. course over that quarter, the say, through this the And P&L I we'll to initial favorability get the it would follow was report, as

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

to Florida. want just to I go

enrollment was moved. Your cap recently

from how thinking the then believe So redetermined And of on the market a as benefit in agreement. restriction the there are floor generally? any extracting members capital the half back I in part And year about you was there? bats are separately, the just of

approach of given so Florida. was changes this Just market curious your how capital to in the much the

vis-a-vis Well, it's here. you, Jonathan. Thank think -- Sid I new

members, usual SEP think return profitability expect the new exchange. be new eligible I think as and will talked kind previously to enroll as business we the I that, we of about And we that dynamics will as members. members occur of vis-a-vis those members standard to

So different there. nothing

are Florida Vis-a-vis our our return entered thing. to with to would consistent the probably regulators. we out the state The market, one agreement the terms I just call with agreement our of when respect effectively

our regulators. and constructive relationships targeted proactive So have we having with always

very entered and again we've to We expect Florida open grateful that as and are everyone's yet excited have to successful another continue, we're for support enrollment.

benefits PBM you I see the And you Great. increased side. Okay. that some on mentioned think

you that what see curious the initial Just else PBM beyond contracting conducted? you side the on

again. here would to that. Nothing Sid much No, I add Yes.

renegotiation I think, contract. a to obviously, we've had a PBM successful

you anticipate in in was reevaluated will with -- think would contract XXXX. respect from continue that will that, calls heard to that I process prior to in XXXX that we that, Mark and benefit accelerate

nothing new So add to there.

vendor. pricing And we'll to list we [indiscernible] -- and our continue at talk quarter-to-quarter the with this continue is Mark. We'll look as

Your line next the Ha question Stanley. of from from Michael comes Morgan

year, just potentially next achieve enough membership is pressure we growth of hit your growth, As and a believe a position year do next the level profitability? curious, you strong of to regardless very you you of your some growth you year? now next your year enough magnitude there membership operating given at ability believe place to look [indiscernible] ability on I'm profitability, in if next do around could scale, optimism enterprise strong to you're Or achieve growth realize that leverage can

your mentioned And half you then expanding also of in space. your more footprint than

about growth, As does your older to hit composition existing of where think newer profitability? ability or matter that comes that it growth markets the from we ultimately and

make probably it's to in here. question. points Sid Michael, X I'd your response

first your First, question.

Mark, has just execution generation. it's important focused internal ourselves think we're increasing story. really that very Oscar to remind that I to been think I on an capital quote And

year, strong really we've had performance as and for performing real disciplined. best that have side, half staying markets the a you by grow see first we MLR And financial the in and So on the pricing evidenced been focus expansion. our as we on of margin

leverage operating to growth So new is story. new our positive and really membership membership

profitability growth as to don't constraint And achieving so target. really that a we see

think question, I With respect this. also about we've second commented to the

target really right markets of I think at the bulk performing vast MLRs. are now our

in highlighted of we've made, current that individual that our very confident market we're with market the we've so the some performance. in And exits

you but or pricing and in above line know, just As we're trends. obviously, released pricing been has early,

And year, so performance you're expansion into both how current starting based individual market financial the how is the just performing. about P&L. to at the of markets first on through definitively the markets good the performing new are and current looking see the We feel portfolio the again, of that in half and

real flags there. no So

could I I year. the if guess, membership question about, ask And one Great. next follow-up to bridge growth just

you next which deem toggling the significant XX% Any revenue If you or cap commission were there would be year? it Could at XXXX color to growth the Florida most enrollment strategy? would premium bridge being rate bucket as to least up it, back broker achieving great. removal, be your

across We're revenue looking to looking Mark We're -- Michael. diversify our more diversify this, markets. to

we operating we where will at XXXX. and our of can markets. mind but than in period believe markets whole So allows much be this growth XXXX, appropriately since and standpoint, kind priced leverage margin in Florida supported grow, the an were -- us, we us won't in to other that we it have with rates from certain a more which in accelerate efficient grow in

don't would you ramp expect the latter that quarter with year growth in rolling So see and then we XXXX. kind of the the into of

would I And of things. highlight couple a just Yes.

we that see I Oscar customer think of prepared this all-time the an in NPS any other that high not bear at I experience does. innovation our mean Mark's to remarks was you or heard bringing our really competitors do quarter.

member how NPS to has and far invest in pleased expect experience. very And to so so the with landed we're continue

Builder using our here at on begin this as tool opportunities and fall to members Oster. they Campaign a have And we'll And the address growth we directly reenrollment. as be to enrollment, in

Taylor of next Cowen. from line the question comes Your Gary from

you the IBNR and risk the payable this claims One, your adjustment. the $XXX pretty with for accrual the mean, just sheet and that had million RADV boost? -- sequentially down I sequentially. Just are accrual why it balance out inventories of down followed are Question commentary was, about on substantially including 'XX implies called a IBNR. on offset questions. Payable and 'XX couple

with hard in claims can't and providers worked our I information, We our in very reinsurance sure in do that settlements said we making backlog. at call, as risk-adjusted efficient are we with first We -- excess the coverage. quarter that have collecting

So for generated we that to huge pulled backlog have we that be opportunity the get can. internally through And while worked we way believe as capital it's us down. as much a and haven't the we the more efficient all triangles,

Yes.

just we of this to to more So color Sid in strategy, that. out a Gary, X that a as quarter. cleared We particular it's this bit adding, part adding Mark's did, large effectively point, here, have quarter, deliberate little operational settlements

reasons up high have of for one reserves of so those DCP fair amount we a so the seen bulk settlements. had be is our And as you've

work you in trend more back a So line, the market, line probably as bit hopefully, down. but the will down, expect should will than higher those DCPs come which brings little DCPs our

of you later, claims. out run Sooner or

So down, still impact it P&L a It's should flow there's we expect to dynamic? cash that. no and come to

because right [indiscernible]. That's

-- you talking me. give of Got talked AI would it. you're you talking providers? Are some more Mark, you flags and little be interventions are Like just -- or these on Since is about with more interventions with And very about AI what a about some obviously then beneficiaries? it your interventions. examples clinical bit. examples there? the Or you clinicians and Can for discussed year, one us more a topical this maybe little

you hear microphone can this now? me Gary, in

say going or was I to Yes. Mark Mario.

our Two will to and We our the I as made applying the bunch go approaches the examples people insights decision examples, really a I invite AI. of and a the that I bunch open to to most. develop of love Two website. to them most, like we

this we them is for at system, the system of much, claim the get They're difficult these of we how complicated claims to a played out and explanations which backlog making role very work our get still parse. with did in can look also system a claims sure of One or we we claims when new down having claim. to traces --

folks outputs language now the a got paid. that and get being more this a of is a internal also So situation, needs used explain is That's And example paid claims members have can over natural or intuitively, begin to a be language, that we to has claim didn't to much kind particular to Oscar so by in a towards system then And a more one, now the insight system why model as quicker what just that get those much take in with. impact. on on can can smart a it time web and language that relies top but pushing providers claim very there provide application nifty model make an we're towards system that, -- of on. additional because

The the The other so a the can system. get one put contracts. in it's there. in a language contract, When contract is also XXX-page claims provider They that some or It's X can and X parse an in a past hospital of complicated. those turns we then, for also configuration It with out our the a They're provider we into a have configuration or text contract what's system. prefill system built in kind years person, in model. what of nice or tools very like. the there so. configuration over And model internal way, we looks

Now there we're language we go There's is -- have think fueling to. here bringing excited and very from a these to And well, can of around with confluence we they further. there. page the we is very a +Oscar plans that page kind I on modularization built place further powerful. Mark organizations as to that there, that you articulated has hioscar.com/ai, more powerful. Oscar update models single-sided we system these big all that This developments And them and that about have now also AI notion benefit is again, more can time. the or the and of

looks. how can You that see look and

administrative It still Okay. the look. am some understanding... think sounds I opportunities talked focused have if I nearest are on others heavily the term a as like about, I'll take side,

Yes.

lot can some So a the they spearheading clinical that. right cases use around clinical I tend that primary think, take should can now in are as of there's and a We have be happening more And answer practice, more thoughtfully. of the rolling clinical bit around use question I cases that do we couple work AI summarizing loop. at that. There's lab use the on that cases. for part care in to [indiscernible] on all us. but those forefront well. much side, for a human the virtual have operations a results, time that, interesting done But We of of so incredibly are governance helping your very Yes, out example, be

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

SG&A in or When And the Just don't don't I out in comp items, that? messing guess, just it sequentially. I million, you I were expenses. quarter, if the the know, they million $X about, G&A like $X stock looks up know any just driving it kind I'm up. if of stock were comp and curious of is line that other so what's may dollars But be actual up take

and our for, underlying the other getting in Yes. like fraud, paying that we're services in back results. abuse and claims that That investments waste things is Josh, Mark. end, we're

-- have down some it that more found And in you than All reinvesting year-over-year? dollars right. that is guys the of to savings of say fair terms significantly

Yes.

I'm then longer-term I your that, it's you offerings. offerings current commentary beyond then a Okay. made Mark, we time, made or individual more to question, comment other And that just you diversify about MA look back to an around it's markets? an just be that. color larger into the individual with thinking curious you interesting on And know market. over pose Should

employee sick employers defined comorbidities a more middle employers. cases, ably in We individual see, million are benefit in the and the insured the contribution group few and in and where cases stabilizing the remaining less plan people mixed pool. that up population, market market individual fearful -- designs defined -- small opportunity to contribution are There towards blow or and employer our will that population insured fact focused move XX of in with an in their the on

pool, we contribution. part we're can and the through so of benefit employers then And defined stabilize a more able the flexible ICRA to to offer the of that program remaining

one that's approach. So

significant move very because of where We marketplace. will fixed be no we to way, have in slower believe not where that that that's view approach in a market in in we're competitors one our it

excel think great to So of our create and place a because and that's in we large ability experience. can effectively at, platform customers more a reach part member we our

The other part is indeed Medicare Advantage.

the a With that nothing do, risk Medicare federal huge to X% business we the come our margins pressure adjustment, let's have earnings systems turning and by Others call lose. we of they for we on business rates something health believe flip their power have of Medicare but advantage to institutions. have a X%, have around it, government where and the X% can really book an their taking them opportunity positive, from to will versus profile negative their

a of that there to work be There's lot done needs yet.

to be externalize integration able of to partners. talking a a to the to have have components. system We people partner platform, that number We're or will we just We fully need not we reengineering and consider business. in can the level that do label partnership private a that get new process health these with so Medicare space business big systems right to of Advantage

you. Got Okay.

network, experience. of So high will a that's going customer model, to Oscar be MA, the sort which right, be narrow

yes, Yes, yes.

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

earlier. to you that I wanted go Great. comment made to the redetermination

you thought. equal Did is had pool far for in your better pool? than than be current worse risk think it that, as I pool? the as coming risk what been you think a you planning risk I said bit the little or that would you to guess

Yes.

slightly thought would acuity. higher it's that Sid said be think it we Kevin, -- Previously, here. I we

So still continue bit but material and portfolio yet, been it's better while hasn't to little than a it. expected, our in as come it's and we've we'll early still early it's watch of part a it

into it's that you like when real-time I get new that the you information where feel that, during guess, on a you Or members membership. think obviously, do guess a really new I it does or And have I because for when mean, past relatively can that take before SEPs visibility X come the relatively is? about acuity? sense into you quarter

have you our honestly, scoring pharmacy. anybody as think lag of time of member, around I boat-like Well, the a the I in drivers terms But get and industry. some a there's in know, spaces data the think, respect with good new every and data the we key of risk as to systems and as you of Kevin, systems, course,

of feel good we we sight so have into it. a And line

acuity still well. also is you perspective, at least And how year of a when that higher year, is from a bids? that kind your more as membership don't in something Did you but that's acuity, up ends because, think assume obviously, to be final if next TBD remember is probably from coming that in so fully about so you tailwind? staying year, the into X-month Or this next next going redeterminations price in it

to I look to as and caution. discipline Well, want you'll you pricing, think always have

we wouldn't So realized it. price until you've experience, the

as think I So experience cautious revisit we And around redeterminations. Medicaid in, we from a view comes still over time. perspective, take a the pricing again, obviously, those that can

determinations and another maybe about year next back just How membership breakout what next the is do question then that think to to growing? else, going you year. going grow going kind you can think And market between everything industry fast do to of is growth that you of be like the the guys

have for before low teens for We premium. and membership said XXs high

individual -- exchange . will do? think the That's overall the market what you

Yes.

question comes Sachs. next from from Rich Your line Nathan the of Goldman

building of you as context after go TAM Could expansion? you put we you just states. increasing the can that membership to next maybe know I half geographic year. help your footprint last in What's your that potential about think said in doing growth Maybe up the question. the kind

yet there's and take from biggest don't of have folks know deep the in where provider we The to are relationships excited Yes, that? size us. Nathan, us. I be first Why final broader terms off, material TAM it's think we service Sid. But we growth. pricing don't us in rural I market, our we've talked -- areas grow about think with a and driver is where for increase will

at marketplace. segments think innovative product is us same about, another to and tackle Mark the different those I unique driver the we which has enable offerings, talked have time, of

a on So in lot that's and where depends ideally, final pricing But TAM obviously, kind as different us, of for about we think marketplaces. things land it, growth. double-digit

in Okay. for view? of new your point you priorities +Oscar. in mentioned Great. change had then, That's And leadership helpful. of business Any for or bringing that Mark, kind from opportunities

development. to our focus where the areas accelerate new is leadership The +Oscar will with we

commercialization we the could. now, ability external which way we want and the Mario comfortable continue with how and to out next, on his to and market. in now bringing hardening actors deliver we lose in the platform season on ecosystem. standpoint of health thought other we get think focus, full and with address approach, Now the The we side have approach more to than which also that although that we about +Oscar come market a are component-driven go-to-market we far profitability, can won't sooner how ways a we our the leadership the will can in team will do, that we but rather the to very start components otherwise from do care platform market and We well do it's not where building platform, done the development so

long-term the board question time. other will that strategy cadence that on The the person us on and strategy is going deliver help on focus to necessary over

approaching used I Aetna, incents strategy that of it have that a mechanism so reward that management process a and it. way And we a supports at

And as business. the will that so of on speak. be side board person coming the that building will help out on that drive we're And we person this

time. There questions are conference this no further This concludes at today's call.

disconnect. may You now