Oscar Health Reports Major Loss, Predicts Profitability By 2026

New York, NY — Oscar Health announced a significant second-quarter loss of $228 million on August 6, 2025. Despite this financial setback, the health insurer remains optimistic about returning to profitability in 2026.

Oscar, a key player in the Affordable Care Act market, reported a $228.4 million loss, or 89 cents per share, a stark contrast to the previous year when it posted a profit of $56.2 million. The company’s membership surged by 28% to over 2 million, driving total revenue up 29% to nearly $2.9 billion.

The surge in costs has impacted many insurers, especially those offering subsidized health plans. Oscar attributed the larger-than-expected losses to a higher influx of sick patients who transitioned from Medicaid to individual health plans.

“We are facing an overall increase in market morbidity,” stated Oscar’s leadership. Their medical loss ratio climbed to 91.1%, up from 79% last year. This ratio indicates the percentage of premiums spent on medical care, with mid to low 80s considered standard for health insurers.

Despite these challenges, Oscar’s CEO, who took over last year after a decade of losses, expressed confidence in the individual health insurance market’s future. “We believe the individual market has long-term upside and is the future of healthcare,” he explained. “Oscar is well-positioned to manage through the market reset in 2025.”

Looking ahead, Oscar plans to adjust rates to address the rising costs while aiming for a return to profitability by 2026.