OSCR - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Maria, and I’ll be your conference operator today. At this time, I would like to welcome everyone to Oscar Health’s Third Quarter 2021 Earnings Call. [Operator Instructions] I would now like to turn it over to Cornelia Miller, Vice President of Corporate Development and Investor Relations to begin the conference.

Cornelia Miller

Thank you, Maria, and good afternoon, everyone. us our third in financial and updated joining where earnings our for our discuss we’ll results, guidance. you for quarter our call, business Thank the momentum Blackley, Chief afternoon’s this which website can through Officer; and at will accessed call, Co-Founder be Investor Oscar’s Financial Officer, Schlosser, and Mario Scott our Oscar’s also ir.hioscar.com. Chief host Executive Relations found Full at earnings release, our are available details in website of our Relations can results on be and ir.hioscar.com. Investor additional management commentary our which about the meaning makes constitute forward-looking provisions Any the the Oscar remarks Litigation future statements within of of under that XXXX. Harbor Safe Reform Private Securities Act Form results as for ended period XX, from a Actual including with the those XXXX, statements various June the SEC SEC. filed of filings those on important other factors, forward-looking our materially and XX-Q differ result the in our those quarterly indicated may discussed with by report quarterly expectations today. are forward-looking of on as current Such based statements developments anticipates change. and Oscar estimates subsequent to that events may cause

third measures over to is our elect XXXX forward-looking call can will While specifically non-GAAP to GAAP to Relations The to so. the call in company With like the turn the these statements Schlosser. do our of disclaim refer any be on that, found CEO most release, update ir.hioscar.com. comparable Co-Founder, which to we the at press quarter reconciliation available in website Investor company’s I point may measures. also certain Mario future, the measures some would and obligation at to A directly these

Mario Schlosser

quarter full of being the really always do, position honor and our you XXXX. you we us. good Thank this financial market for for results, of year so third with lastly, topics, is our Cornelia, our will XXXX Today, several for third perspective to and our a in the context on updates outlook provide on quarter you, Thank an results XXXX, us. with joining evening, thanks for everyone. such And

quarter results. third with start me the Let

membership revenue growth Our be to strong. rates continue

and year-over-year, assumed higher premiums We and growth distribution XX% is policy member this strong mix as year-over-year, best-in-class and increased premiums premium increased by XX% and membership driven business direct growth experience result our our reinsurance brands, solid of towards believe as Our our shifts provider plans. before relationships. ceded a well

growth Loss a the results quarterly second these intra-year majority row XXXX, membership because From this SEP drive growth. and opportunity stronger perspective, XXX,XXX represent have of seen Texas the third than as a on driven enrollment market, increases as membership, XX% a growth At representing ended of With we the and top-line a to retention the greater was respect we Our scores continue Ratio to years. of growth Special company. growth. members, in year the special of largely limited of largely an risk membership we have a This with was our in the year-over-year, Periods. quarter than previous increase a adjustment enrollment by XX% result special book above Florida, is collect slightly Enrollment our Medical headwind third business Individual members. level, our in consecutive growth California quarter public in to more

and to expected membership ahead. XXXX to of tailwind this in for because shift years these expect a the we However, MLR in retention cohorts improved performance

now, balances XXXX, were and in the growth than open pursue Entering are fewer markets we lowest priced to For that XXXX. we plan enrollment profitability. continue this we in disciplined pricing

markets X% just lowest of Specifically, we in cost have our plan year. next the

next to speaking, happy the at achieve vaccine about. and which just we margins book an and very the rates year. also COVID kids priced We to increased for level weekend, I’m improve our environment, including vaccinations. we My Broadly priced costs testing endemic related ongoing growth this and got

Heading systems strategic Now days demonstrate offering product where we we’re looking from and as is demand open into the interest network new meeting and and is. arrangements to we great ongoing market These XXXX, states, XX in the markets traction are our work with and contracts health into seeing enrollment, Florida, announced health in the markets. systems including Colorado. the broaden Texas, in Illinois Oscar key we our providers with several

unit growth to and expect drive coming in years. We in our these additional economics the membership improve business individual overall

membership quarter, performance Connecticut and our by solid Cigna continued in driven growth nearly expansion over saw Oscar our our into also last We’ve + business. and We Missouri. doubled in the Kansas

in the small the segments. optimistic We’re potential group about

annual currently in we quarterly know, look we more next there the the sharing earnings call. in to for As Medicare the of growth period about midst are enrollment you forward Advantage, and our

Our is in primary about a our I Advantage First members, talk Medicare in expanding will just onboarding Health which focus minute. more

MLR on Now, time more Loss turning pressure the to Scott Medical want shortly, our to this be had quarter. Ratio. this spending on note I that we will but

XX.X%. special adjustment Ratio was is anticipated, and by Our utilization driven quarter audit net growth part than higher results. enrollment adverse This than by Loss Medical expected, higher some the higher-than-expected consolidated was in for core by clearly that risk

see these they are predominantly next today. we believe issues into carry drivers, that based the year will on not through landscape we Looking anticipate we

driven compared said, we additional deferred call. on of anticipate towards We October. offset detail quarter, costs to we eye Scott unpack COVID, variant COVID continue levels. September quarter in barring keep reduction COVID in remainder year. COVID the strains, more second tracking landscape August the is teams to reduce conversation in the are end hospitalizations a a peak pre-Delta These variant. COVID both with of volume that later and Today, in saw saw our variant in and the consideration by October, the costs to in these relative note, at rise care peak. third in On for close I to costs will of will acute non-COVID further August were to We by largely subside, line the the the the Delta As we XX% and we in Of utilization. a the saw partially this impact

business. platform to now +Oscar, our Turning technology

and in provide are reminder, these ripple health providers become care. enabling bear continue providing overall insurers consumerized, to we in a work and for three through more – the longitudinal trends +Oscar, markets, trends care As these a +Oscar. We to better further see risk ground to fertile

we funnel. with of in conversations prospective Our out the clients are the and pipeline, top advancing to continue our build

conversations of our solutions. one their And piece our continue growing execution in we share insurance communities. hearing we business, local in providers In believe key funnel in build wallets fact, that our looking the currently Therefore, out feedback to to pitching +Oscar platform, their our A for are clients. strategy positive parts that of is quality for of are view business insurance we focus and both book the a is +Oscar also +Oscar is synergistic. our current as of in

the more in +Oscar in, +Oscar today Health million their $XX are Care digital fee-based onboarded our primary lines. we their out delivered and +Oscar XXXX approximately Oscar of in we become is on managing First markets, transfer and of as from In time, date, to platform for First First power Medical our additional being the plan Oscar actually XXXX, perform XXXX. enrollment from markets And for platform. offering weeks only by the are strategy growth about the supporting into year in are membership. an members a we and Cigna XXXX, the business care current processing, Virtual their about markets. Health of revenue it offering seven MA Group Care continues members member’s We’re and to anticipate will Virtual have first our delivered +Oscar our experience. approximately Primary based to into onto Health enrollments, individual the now are already represents Health largest where fully in of arrangements expanding we cutover offering truth source of the platform, several part our actually a successfully XX% Primary to for the +Oscar our well + markets. This we of individual Beginning First XX,XXX already

growth we focused XXXX. targeting our in which line our the on bottom we in scale business increase insurance Looking ahead, be will to are of remain improved profitability results and continued time, a driver businesses, of over

continues business, capabilities; at which insurance two, at total of and care our of business growing revenue improving cost market insurance costs achieving our fundamentals. and engage our in greater insurance than more by costs the to three That tools built to a from enable and engage revenue increase balancing be one, focus strategy and call continuing a our stack; share scale and that, profit and rate economies focus our value the components: best-in-class to lower to industry three, requires and growth additional therefore, efficiencies care building to extract on lowering operations. as continue rate Our than overall accessible a let our the growing includes result we of members. affordable and reducing member and We strive With Scott. medical gained partners, a over for our to +Oscar the me technology our turn to to provider have the the make improvements members health faster

Scott Blackley

I’ll during how base through special nearly and driven everyone. with the base XX enrolled the pressure enrollment business, XXX,XXX with this but in Membership the + the Mario, quarter business. in XXXX. growth represents increase members, continued we’re future Oscar great expectations states. XX afternoon, in go our exceed three believe next our Medicare underwriting books and of about selected From by XXX,XXX year. member we’ve XX% membership. the ended results third extended you into as of we plants to period, SEP periods Today, the XXX,XXX an Advantage Beginning XX, we thinking members. Cigna of you, top-line our explain and walk We consumers momentum in as look year-over-year, all towards September ended good the a quarter through which as Individual, of of our our growth August Thank positive start We

assumed well XX% membership higher Premiums percentage. before the lower risk Third premium reinsurance driven by up $XXX $XXX quarter, towards policy adjustment our plans. as mix business by were XX% million premiums year-over-year as year-over-year increased year-over-year, to premiums ceded and shift million, in higher quarter and driven direct growth

or RADV recognized the adjustment. COVID. to audit our We It of $XX data expense The two XXXX. results. risk exercise this The majority validation is relate adjustment XXXX risk approximately of audit million XXXX related completed. due this were years, year quarter RADV RADV headwinds which to spans adjustment the recently and atypical to risk to Turning results,

improvement our have seen process in adjustment made in better further XXXX a risk XXXX. results audit thus and in results. XXXX me, in – seeing And We’re excuse far, marked we we’ve enhancements

premiums quarter earned this not we $XXX XXX% going of but XX% share versus the Premiums by is driven reduced of in million, such, the or increasing quarter, was is for in of increase third As a the up expect third a reinsurance This XX% quarter forward. rate XXXX. net year-over-year. quota XXXX cession headwind

Our Ratio MLR. third XX.X% Medical Loss the three quarter. There items were was impacted the that in

basis roughly the for modestly non-COVID half of the third effect the XXX COVID Net the approximately basis. The which offset Lower COVID of current points of utilization in in quarter. spend was the first in a quarter, direct basis quarter, on Delta spike the our item approximately accounted COVID above the which XXX inclusive year-over-year expense of in was was COVID wave XXXX our expectations. unfavorable MLR pricing points to

fourth potential spiked lower August through As a all suggesting COVID else quarter, mentioned, equal. costs Mario the and in impact in declined October,

The MLR basis. XXX MLR risk basis adverse which second points validation on the approximately results, impact drove impacting of year-over-year data the a adjustment item was

but As quarter, a the in this not I it’s is our mentioned, baseline. impacting headwind

SEP the same in versus basis We the our MLR in pressure year-over-year we quarter year. the on The of than our anticipated. impacting SEP drove third that points approximately was last was growth membership, membership item higher growth which estimate XXX MLR

in OE we mentioned run members our than risk largely dynamics call, by As population, the less partial adjustment year. our driven last SEP favorably for

was through expected. higher last versus we effect And period more in the as than this same our SEP results year. we members MLR last as year, have have We come our seen

next is MLR, Looking expect XXXX a year. during for growth SEP retaining membership we our headwind OE to that will SEP members XX be tailwind in forward, but a

back company to insurance our metrics. Turning

offset premiums insurance year-over-year expense third health insurance the combination company by quarter associated costs to items points increased adjustment fee of members. of a on These due Our impact of with lack and basis partially XX administrative XX.X% SEP leverage. distribution risk largely and the operating were ratio the

year-to-date in Our the administrative sum basis. overall which combined on Loss XXX.X% the of the Medical quarter ratio, Ratio XXX.X% is the a was and insurance ratio and company

adjusted in by driven membership MLR driven and EBITDA $XXX million by higher-than-expected of Our loss $XXX the million volatility higher membership. costs year-over-year, increased largely volume, overall

quarter billion balance at cash our the of of ended to million cash another undrawn. and billion at with $X.X the We subsidiaries, sheet. and parent our revolver investments the remains Turning insurance and $XXX $X and investments

now turn on next the color updated some and offer headwinds me XXXX Let for to guidance tailwinds for year. and

We to annual at a and $X.XX are growth. for represents higher premiums this also direct by XX% raising year-over-year premiums. SEP This our midpoint, billion. policy increase At year prior a million $XXX assumed roughly expectations to from driven billion in $X.XX this represents guidance increase the midpoint, the

SEP XX%, largest expectations. basis growth increase are XX% updating driver to We year the the that exceeded the MLR was our full has a XXX to of increase our guidance our for The midpoint. XXXX membership point at fact

in XXXX also increase it an premiums, driving on is MLR. this puts our pressure While

updated validation accrual. are COVID-related adjustment costs higher the finally, of be expected the results, have to estimates. third also impact year data inclusive our quarter We risk prior in full modestly And the for of net XXXX than

We are and our Pulling updating adjusted starting our are XX%. guidance quarter head that up, insurance company guidance ratio year. continued to company million of Based will to as to higher-than-expected EBITDA XX% into insurance to guidance point maintaining next we adjustments, strong million. $XXX for XXX% on a aforementioned administrative as loss XXX% the results we combined growth $XXX to top-line the serve reflect this our

enrollment into underwriting will results a drivers reoccur think we COVID, RADV to quarter, regulations. do expected muted accrual absent to larger in base in forward. shift carry us COVID this XXXX impacts heading this our in special captured any outbreaks, growth some respect a volatility while year, have turn of potential gives be our to we to are events All strains to endemic-level we the levels volatility of effect optimistic have headwind next The treat higher continued COVID the next a told, giving Mario. and may the we going While we results. and that, mute unlikely be membership patients with of I’ll evolution into of the the in risk. such The industry, future experienced of And an quarter vaccinations heading costs to as XXXX, fourth guidance is year expect XXXX. back atypical, our in a and XXXX this With effects and remain to quarter pricing. the or into anticipate through XXXX With a not call therapeutics it’s

Mario Schlosser

Thanks us Thanks, this. Scott. taking for through

we I points. Before just questions, few take want reiterate a to

we in many First is business. XXXX, as head we – see tailwinds into our that we

are now XXXX times business business in of anticipated. for result to see here, we insurance heard another we year lines. continue We And value of that care our to consumers experience. than health member well we in market. best-in-class a market is how the there that of significantly profitability are business value as realizing is of IPO, discuss much gradual paradigm than that And today being world XXXX. of further in members target coincidence. individualization our and like a full shaping for key the buying shift and strong trends It’s best consumer-oriented higher And think believe confident we We our with that great in that this players growth our positioned, of a seeing you’ve year and health year several serve all individualization. ecosystem me individualized care to Less what individual we the continues we’re DNA. products all an across first growth membership increased insurance And the power of a and type our positioned kind a bring for this a a is brand, of after isn’t we towards are that expect the

call our the And in turn for with +Oscar number our to Now ground to into step at about to we growth coming the And these the for change open well. there, of we’re of up the that, the your will the lives respect with work are same have in providing questions. XXXX. over fertile a excited I line business as heading platform trends operator

Operator

And from Kevin Instructions] of [Operator first line of from the Fischbeck comes America. question your Bank

is line Your open.

Kevin Fischbeck

Great. the right. All appreciate color. Thanks. I

without to is saying that largely me kind guess, you’re be onetime. you little targets I Or the it of linger profitability year? you’re that kind may less XXXX like year that profitability insurance guide line into is straight giving some sounds believe So you issues back-on-track level, that feel it bit there specific you think that in XXXX like largely still headwinds XXXX that back track XXXX? are in for of XXXX, do at on there a the a to and of reason a have make for to next the

Scott Blackley

the Appreciate Kevin. Thanks, Sure. question.

So I I think few year. a would there’s point to going next that into factors

year. opportunity items the The and are this just the that that year on quarter this And we as see MLR pressure the first for improvement in MLR putting an particularly largely you really next mentioned, is transitory. are

to we over that scale have so that secondly, and about, margin. out year. performance be time. Oscar can a to And XXXX, growth. a driver pricing Mario for take balancing profitability think for the in that growth thoughtful And I next our approach we good And point we’ve better really And just see a in going strong year we another really opportunity where of talked then tried we’re as at think we MLR would of is

total just would having mention +Oscar going meaningful certainly and the bigger level, next the is thing there. year. contributing about that potential we’re revenue of so deals better, excited margin also start So the amounts at we’re I last company is to then And

for into of a reason lot we as So we optimism next see go year.

Mario Schlosser

final longer to to building, systems The the been keep up, the as I of I the is better it will it might the the able well. value And able thing building, think continue we longer we’ve we innovate. been are tools of get Yes. add the are get to we’ve run, we we longer out we out

Kevin Fischbeck

Okay. guess, right range MLR the wide guess MLR then so wide very I XXX points guidance MLR. basis I – a for for QX being – the QX implies for like That’s year, helpful.

that basis why XXX wanted as I get a this range still to the just point at for So in year? to color some is MLR point

Scott Blackley

I’m conservative effort honestly, in is I risks. dynamic it that the represents pretty because that say Probably would capture third and CFO, on we all a that, I seeing in and environment, updated this, were based a reasonable just in we’ve we Yes. to a the for trying those But quarter, everything to – would environment. guidance seen expect what

Kevin Fischbeck

Thanks. it. Got

Operator

next your from And comes Taylor Gary question Cowen. from

line is Your open.

Gary Taylor

deferred on probably is costs that thinking Hi some which hear Medicaid of thoughts in a just the have wondering the I about volatility. thoughts gap also a is negative. to how could several people, you pool might good be into drive the for reconciliation care legislation do probably outlook greater people budget then And you’re positive, for overall with on folks the population. a potential Individual afternoon. and some if wanted But And that passes. how care higher that just your lot million coverage risk introduction their given

Mario Schlosser

Thanks, Yes. Gary.

And that and closely, of something a will course. chance there’s high So membership monitoring there into think I the come market. will pass this been do we’ve that

have as experience the people into of sort regulations people prior of and market various market. But and with now years we’ve markets come like new individual leave the seen change individual there. membership the We into of segments accepting the a back in favor

they in From to view, there, utilization that folks long that’s that population, direction is major one risk population where which comparison could this places some see out potentially the year, in point I of a of issues coming on the and couple a SEP they attributable who get in look seeing they are going preventative utilization, of we’re care the fact SEP that eventually from the bit have and But fact back into utilization, of little a these some scores we think thing line there where ER is headwind there. other we higher kind this steep the that can’t market when higher there’s because just be the it’s utilization the is the largely a in the there. MLR that actually of collect self-selection we’re population. seeing enough come year’s bit also hints coming sick folks

of I interesting repeat And I think can statistic we view physicians, folks to XX%, Primary very – that like last but in that mentioned think that to I business call, channels the much sure is And now from have care before. set member point they up if that. care folks for virtual and our PCP experience to think earnings we’re actually, on which those very Virtual from I make the the things Care didn’t this we manageable. fact, repeats, so I grab from and have of is a and a that our right attributed of get

we’ve get to in the And run. about there’s besides PCP them all coverage how that across think get the so that our about channels them in And a get And just thing think fact the for net for say there. more net generally a to fact we in to towards for the PCP thrilled person. business, I business. great We positive a football got to I to outbound we’re tailwind. machineries our country. a good and person it’s is I’m I to positive that’s going go a can people order to unequally bit Overall, we campaigns member talked are folks attribute Those run those think

Gary Taylor

Okay, you. thank

Operator

Suisse. Jonathan Credit next comes from your And question Yong from

is Your line open.

Jonathan Yong

the taking question. Thanks for

in geographic if kind respect to for does versus next feel this areas are pricing the better And all? positioned for commentary, there the XXXX exchanges? your growth any year, you’re with where Just inhibit disciplined others of at then you

Mario Schlosser

as Yes. Good well. question

a this enough. the mentioned the is of pricing, in us we I doing and think been – we for script briefly, growth really way as profitability. about long We’ve balance So

like know hard think barring stuff really balance to a where a to we had this happened that it the dynamic in of now, of very environment how I lot sort way get we this foresee. towards year was

Let a increased rates average the weighted me year. kind we On basis, reground our of for across the real portfolio quick. numbers next

So if increased membership kind at – you XXXX really rates look where which you multiply of all in, we they’re to is this out, XXXX. our and from

there. let as the So start I Last are priced I this well. lowest script. of mentioned markets in plan, about me want in. year, XX% to again the repeat this the were we we

Now lowest only X% the we’re about markets year. priced next in of for

that’s the overall backdrop. like So sort of

from we lean out in markets, we really strongest relationships. certain have driven in win much feel by to a perspective Now lean of provider In where a and is markets. we we pricing how have where the right we partner of

be in do of at out important lever after years growth, with the resonating in some so really I’d I on. prepared say as people information the think and in already and stuff for expectations I is that the is And One so to the a profitability again we where on. And and business distribution have. days, our in target our on anecdotal markets we and markets in things. we roman, So share first we talking strong say, more really is I open are insurance brokers point have achieve on we here. Those yes, the a to again, a great being judging next two really XX in of and launched just deliver future That’s on we with together right, innovative might called helping. the members view in there at really where on I profitability That’s that’s risk year partners even bunch have we – XXXX. now and it with it’s get many very early growth even second we many, doing I this for that’s, continue us, from are more eye have there remarks the where design, relationships. so year. in but provide think and And can bit we all product our Nothing’s is have thing brokers next our And that. changed of providers this plan to members XXXX. that, think, that

Jonathan Yong

going redeterminations are Great. that to into moving question component your then given Okay. how pricing? kind at target just there, kind looking seems kind year. come expected next thinking are now. you. that back right Thank Was of be And a that of to Gary’s you alongside factored and that, And of

Scott Blackley

based of time, we – that’s tailwind market, we that think come out the pressure. the will be over I Look, have to think there. environment to likely they’re this saw with some the build that into Yes. come net Certainly, we company. a as pricing MLR members we if super we our excited But for one put are, on that that them at time those is that our we talked about, the

Jonathan Yong

you. Thank

Operator

Goldwasser Stanley. question from Morgan And from next comes Ricky your

line Your is open.

Michael Ha

on Ha for Hi guys. This is Michael Ricky.

in impact I mainly is you what Thank being mentioned prepared XXXX that headwind processes audit. changes that Red and little can your are to XXXX? XXXX you. there in and mentioned Could changed between year. improvement And just bit results an your you this quarter? in about talk about And are? you how made the lastly, But those what is changes think was revenue XXXX. RADV but know remarks, a much the you this I of talk you have mentioned might

Scott Blackley

Sure.

just opportunity ongoing the at is it we audit two $XX really better I a And because just off, the the accrual as the XXXX of covers review seen years, that I our, prepared build the in through then was continue did. say impact million. things and it’s XXXX would the beyond validation than an but in roughly that So RADV We’ve And unusual and that’s performance made said that, and first we to XXXX. remarks, of our all scores in just results, collection where And to expected. audit. a are results others the And the thing that are the audit enhance the the relative bit identified just we’ve some I more on causes. are the is data to market, the how other improved make of together basis, that’s had sure XXXX and have through execute of operational There’s our we’re process a doing taking exercise. high, about then effectiveness retrospective can we below And say support we got types that would what we my of we moment. that the performance

Michael Ha

it. Thank you. Got

Operator

next question Wells from comes your Baxter from And Stephen Fargo.

line is open. Your

Stephen Baxter

the couple thanks. of Hi trends MLR try to on there A clearly. more a little core identify to some

on said QX in basis assuming about the call, points of you expecting you’re of XXX COVID from think no and the offset that half non-COVID. I lower from year, also the pressure back

indeed quarter, points like basis COVID this utilization. of you So sounds it XXX did and mentioned I points the from see about of think non-COVID an XXX offset basis lower

think So than actually expected. said expected. that during RADV I But costs net prepared SEP the like were also that than were trends that COVID then of you sounds to me and better remarks worse outside

and and pieces could of I of sort you which think the what clarify are hoping is it lessened. Just there those one

Scott Blackley

that is I this Sure. complicated a topic. appreciate No,

see lower was that happen COVID we precisely, that the would that decrease utilization overcomplicate could guidance first had a of roughly prior cost that we’ve that non-COVID creating to in So happen. we offset. would our increased what That estimate And little previously be offset that saw for And baseline. really direct costs, bit what that expense. for but we forecasting We estimates. COVID assumed didn’t COVID, the happen, risk would our the We that levels our COVID basically knew by a natural at And incur. would the direct the we on company guidance, we assumed. offset we all, the expected utilization hedge enough fully of there really cost, would What to at try utilization. didn’t of if that would cost quarter last utilization net increase exceed COVID direct is didn’t our be a was here’s you’re doubled

would and of I say that the excess estimate. of that was – $XXX I COVID we mentioned, So our net million costs in as had

Stephen Baxter

Got it.

a – it. fine Just on a put to point put hopefully

Scott Blackley

– XXX excuse basis points, basis me. million said I points, it was

Stephen Baxter

Got it.

clear, of offset. cost though, points XXX in sounds with you expecting to second like totally no be the Just basis it COVID were half,

You an got points and XXX non-COVID that basis there points said as of XXX was basis offset.

So makes see some did you sense that offset.

I’m So overall, was the that the expected, like than this it like it guidance. an confused than in is sounds was worse it actually you but just issue about how better for seems quarter,

just to there not that is missing. in be So I’m something that there factored needs

net that’s COVID? if Sorry,

Scott Blackley

a COVID think guidance higher, No. higher not Look, would costs by that say that just I on the were I what assumed guidance marginally lot. was side, net that our had than

offline, But it’s happy points of to that the and talk. up I’m basis XXX can pull net, the including you So we give offset.

Mario Schlosser

The gross we was than thought get and enough. didn’t higher offset

Stephen Baxter

Got it.

Okay. And me. point then last for just clarification the

for guidance points of Just repeat the and add SEP into your XXX how quarter. much can impact clarify the Thank you basis you. the year. the for And

Scott Blackley

Yes.

a of basis points. costs basis on year-over-year quarter, on SEP basis basis. was XXX discrete MLR, were the additional SEP XXX year-over-year a the In that’s and points So

is the accelerating, year would fourth SEP so the and into expect our that that full quarter effect And impact. the guidance. we So is built rolled into guidance. in We those we that

Operator

your from question And Josh from last Raskin Nephron. comes

Your open. is line

Josh Raskin

in Hi, thanks. Appreciate here. guys squeezing me

about down, down. million, I know and subsidiary was cash So think, parent I $XXX was cash

yet think about EBITDA I obviously, and seen sounds $XXX on And XXXX, the I quarter loss. it guidance was think to in terms like, in it about $XXX million fourth a million. for be loss of expecting but

on questions just think term or maybe needs over next even the two? on Has this capital plan needs, your now. guess, where longer is year I thoughts or capital shorter your impacted term you So

Scott Blackley

insurance of liquidity all, first I Sure. parent end we got excess which And untapped say That for of well of kind on that then billion say, additional the question. the quarter. buffer. And the cash just I regard at subsidiaries, occurred a make the driver risk with of we that’s had the there, capitalized. on There’s adjustment that, cash our offers all top third have of of just we was entities the $X would speaking, the would with revolver. decrease Thanks to in payment of our an pulling up, the insurance are cash the Broadly of We’ve there. quarter. at

past, the reinsurance as growth. option As look for I’ve to about an the at we mitigate us effects always talked in of

that think I so of And lever. as a

the feel got into So we’ve XXXX, and need should something burn. enter position we like we have I as pulled to haven’t do a strong to liquidity cash slow that levers there down we we

Josh Raskin

Thank Very clear. you.

Operator

conference you our question-and-answer our call. Thank for concludes and all participating. this session And

disconnect now lines. may You your

Mario Schlosser

very you much. Thank

Oscar Health (OSCR) 11 Nov 212021 Q3 Earnings call transcript