An Obamacare startup is losing a lot of money
Oscar Insurance Corp., the startup that focused on Obamacare business, has gotten a big wakeup call: it lost more than $200 million on premium revenue of $425.9 million in 2016, per Bloomberg. Last year it offered plans in New York (its biggest market), New Jersey, California, and Texas.
The pattern: That's worse than 2015, when losses were $121.7 million. Other insurers have had a tough time too, with Aetna, Humana, and UnitedHealth Group exiting most of their Obamacare markets ahead of 2017 due to steep losses. Oscar exited New Jersey for 2017.