Oscar is still losing a lot of money. Photo: Oscar

A trail of red ink continues to stain Oscar Health Insurance. The startup lost $127 million on $229 million of revenue in 2017, according to newly filed financial documents. That equates to a somewhat higher net loss margin compared with Oscar's $205 million loss on $426 million of revenue in 2016.

Why it matters: Oscar, co-founded by Jared Kushner's brother, Josh, has raised more than $725 million in venture funding. But the company is still a small fish in the health insurance ocean, has failed to price its premiums correctly, and has struggled with bloated costs year after year.

The details: Oscar's revenue fell in 2017 because it pulled out of New Jersey and narrowed its networks of hospitals and doctors. But Oscar still sold Affordable Care Act health plans in New York, Texas and California.

Here's what we know about Oscar, based on the latest documents:

  • Oscar had about 82,000 members. Nearly all bought individual ACA plans, though Oscar is expanding more into employer coverage this year.
  • The company's medical loss ratio, which shows how much of its premiums were spent on medical care, was at or well above 94% in each of the three states in 2017. That's not good.
  • Administrative costs alone — the costs of processing medical claims, salaries, advertising and technology — are still eating up more than half of Oscar's revenue.
  • Oscar did not immediately comment.

Flashback: Oscar CEO Mario Schlosser at the J.P. Morgan Healthcare Conference this past January: "Our business model is working."

Go deeper

Pence to continue traveling despite aides testing positive for COVID-19

Marc Short with Pence in March. Photo: Drew Angerer/Getty Images

Marc Short, Vice President Mike Pence’s chief of staff, tested positive for the coronavirus Saturday and is quarantining, according to a White House statement.

Why it matters: Short is Pence's closest aide, and was one of the most powerful forces on the White House coronavirus task force. Pence and second lady Karen Pence tested negative for the virus on Sunday morning, according to the vice president's office.

AOC: "Extremely important" that Biden offer Bernie Sanders a Cabinet position

Rep. Alexandria Ocasio-Cortez (D-N.Y.) said on CNN's "State of the Union" Sunday that she believes it's "extremely important" that Joe Biden offer Sen. Bernie Sanders and other progressive leaders Cabinet positions if he's elected president.

The big picture: Ocasio-Cortez was pressed repeatedly on policy differences between her and the more moderate Biden, including her opposition to fracking and support for Medicare for All. She responded that it would be a "privilege" and a "luxury" to be able to lobby a Biden administration on progressive issues, insisting that the focus right now should be on winning the White House.

2 hours ago - Health

Mark Meadows: "We are not going to control the pandemic"

White House Chief of Staff Mark Meadows defended Vice President Pence's decision to continue traveling and campaigning despite his exposure to aides who have tested positive for COVID-19, saying Sunday that Pence is exempt from CDC guidelines because he is "essential personnel."

Why it matters: CDC guidelines call for people who have been exposed to the virus to quarantine for 14 days. Meadows said on CNN's "State of the Union" that Pence will wear a mask when he travels and argued that "he's not just campaigning," pointing to the Israel-Sudan normalization agreement announced by the White House last week.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!