Newly Public Startup Insurers All Post First-Quarter Losses

Three startup health insurers that became public companies this year — Oscar Health, Inc., Clover Health Investments, Corp. and Alignment Healthcare, Inc. — recently unveiled their first-quarter 2021 financial results, with all posting substantial net losses. While such results are not unexpected from still-growing companies, the details contained in the firms’ earnings reports suggest that they may not all be equally capable of eventually turning a profit, industry experts say.

“The overall takeaway from the quarter is that when you look across the board at all of the startup health plans, they all have materially underperformed the established, major health plans out there — the publicly traded ones that have reported their quarters so far. And the question is, what’s the degree of underperformance?” says Ari Gottlieb, a principal with the health care consulting firm A2 Strategy Group and a longtime critic of Oscar’s business model.

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