May 16, 2017

Startup insurer Oscar is still losing money

Oscar Health Insurance

Oscar Health Insurance lost $25.8 million in the first quarter of this year, based on its financial documents filed in California, New York and Texas on Tuesday. That was an improvement over the $48.5 million loss from the same period last year.

Our thought bubble: Oscar was able to slow the financial bleeding after exiting several Affordable Care Act individual markets last year and decreasing its membership to 90,000. But Oscar is still hemorrhaging a lot of money — more than most people expected from a startup that attracts a younger and potentially healthier member base, and a company that has promised to change how health insurance works through its technology.

More numbers to chew on: Oscar, an investor-backed startup that uses a narrow network of doctors, now has lost more than $350 million since 2015. The insurer also continues to struggle with high administrative costs, ranging from 25% to 56% of revenue.

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House Democrats lose appeal to force McGahn testimony

Photo: Alex Wong / Staff

Democrats in the House lost an appeal to force former White House Counsel Don McGhan to comply with a subpoena, Politico was the first to report.

Why it matters: McGahn was seen as a crucial witness in the House investigation into whether President Trump tried to obstruct the Mueller inquiry. The U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 on Friday that it court did not have the authority to resolve the dispute between the executive and legislative branches.

The Americans who can't hide from coronavirus

Illustration: Eniola Odetunde/Axios

The stock markets are in bad shape, but for the millions of Americans who aren’t invested in stocks, coronavirus is presenting a far more imminent concern.

Why it matters: Quarantines usually work with at least 90% participation, but many Americans lack the flexibility to work remotely, take a sick day or absorb having schools close.

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Wall Street notches worst week for stocks since 2008

Traders work on the floor of the New York Stock Exchange. Photo: Scott Heins/Getty Images

Stocks closed down about 1% on Friday, ending the worst week for Wall Street since the financial crisis.

Why it matters: The stretch of declines came after a spike in coronavirus cases around the world earlier this week. The steep losses prompted questions about the fate of the record-long economic expansion, as well as a rare statement from the Federal Reserve.

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