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.

0 Comments
© 2021 MMIT

AIS Health Staff

Related Posts

https://www.mmitnetwork.com/wp-content/uploads/2021/12/WordPress-Featured-Image-radar-on-drug-benefits-COVID-19-Treatment-Candidates-at-a-Glance.jpg
December 3

Health Insurers Embrace Vaccine Requirements for Workers

READ MORE
https://www.mmitnetwork.com/wp-content/uploads/2021/12/WordPress-Featured_AdobeStock_23041642.jpg
December 3

TeamHealth Wins One Battle in Ongoing War With UnitedHealth

READ MORE
https://www.mmitnetwork.com/wp-content/uploads/2021/09/MCO-Stock-Performance-August-2021.jpg
December 3

Optum Dominates UnitedHealth’s Investor Day, Growth Strategy

READ MORE

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today