Oscar Health is not your grandfather’s insurance company. It is a digital-native operator that just posted $3.05 billion in Q1 revenue, up 42% year over year. Net income hit $275 million. That is not a typo. That is a profitable insurtech scaling inside the most regulated corner of American capitalism.
The company now covers over 2 million members across 18 states. That is one in every 13 people on the ACA exchange. Since 2019, membership is up 780%. Revenue is up 20 times. The entire business is built around the Affordable Care Act. That is the engine. Oscar sells subsidized plans to individuals and small businesses through the ACA marketplace. The government pays. Oscar delivers.
The risk is obvious. If ACA subsidies vanish, Oscar’s growth story hits a wall. The Trump administration has already moved to shorten enrollment windows and cut navigator funding. But the ACA is still standing. And Democrats just introduced a Medicare Part E public option that would expand the exchange dramatically. If that passes, Oscar’s addressable market could triple.
What makes Oscar different is the software. This is not a legacy insurer with a website. This is a full-stack platform. Claims are processed automatically 98% of the time. That compares to 80% for the industry. The Member Engagement Engine nudges users with reminders, checkup calls, and preventive care prompts. The goal is to keep people healthier and cheaper. It works.
Oscar’s NPS score hit 66 in Q1 2024. The Spanish-language version scored 87. That is unheard of in this industry. The mobile app has a 4.9 rating in the App Store. Ninety percent of provider visits are rated positively. This is not just a better interface. It is a better experience.
The company is also cutting costs. SG&A dropped to 15.8% of revenue, the lowest in its history. Medical loss ratio sits at 75.4%. Operating margin is 9.8%. These are not startup numbers. These are insurer numbers. But Oscar still trades at just 14 times projected 2027 earnings. The market cap is under $5 billion. That is less than half of current annual revenue.
Oscar is not a bet on insurance. It is a bet on the infrastructure of public healthcare delivery. If the ACA expands, Oscar scales with it. If the public option passes, Oscar wins overnight. If nothing changes, Oscar still grows. The software is sticky. The margins are improving. The market is mispricing it.
Sources
https://x.com/TheRayMyers/status/1938659285648425285
https://x.com/MrMikeInvesting/status/1938943334128726183
https://www.globalequitybriefing.com/p/could-this-insurance-disruptor-5x
https://www.fool.com/investing/2025/06/18/hims-hers-health-insurance-business-stock-oscar
https://m.hioscar.com/press/oscar-health-announces-2025-market-expansion
https://ir.hioscar.com/financials/quarterly-results/default.aspx