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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

1 min ago - Technology

Facebook stock whipsaws amid ad targeting concerns

Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images

Facebook's stock showed volatility in after-hours trading Wednesday, despite adding users and beating on top and bottom lines.

Why it matters: Investors seem spooked by proposed changes to user data collection by Apple that would impact Facebook's ad business, in addition to perennial threats of new federal privacy regulations.

Fed chair says low interest rates aren't driving stock market prices

Jerome Powell. Photo: ANDREW CABALLERO-REYNOLDS / Getty Images

Federal Reserve chairman Jerome Powell told reporters on Wednesday that rock-bottom interest rates aren't playing a role in driving stock prices higher, while noting that vulnerabilities to the financial system are "moderate."

Why it matters: The statement comes amid unshakeable stock prices and a Reddit-fueled market frenzy — prompting widespread fears of a bubble and the role monetary policy has played in that.

2 hours ago - World

Biden freezes U.S. arms deals with Saudi Arabia and UAE

Trump struck several large arms deals with Mohammed bin Salman (L) and Saudi Arabia. Photo: Kevin Dietsch-Pool/Getty Images

The Biden administration has put on hold two big arms deals with Saudi Arabia and the United Arab Emirates which were approved in the final weeks of the Trump administration, a State Department official tells Axios.

Why it matters: The sales of F-35 jets and attack drones to the UAE and a large supply of munitions to Saudi Arabia will be paused pending a review. That signals a major policy shift from the Trump era, and may herald sharp tensions with both Gulf countries.

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