OSCR - Earnings call transcript Q4 2021

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Operator

Good afternoon. My name is Rachel and I will be your conference operator today. At this time, I would like to welcome everyone to Oscar Health 2021 Fourth Quarter and Full-Year Earnings Conference Call.

Our lines have been placed on mute to prevent any background noise. After the speakers ' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like of it Relations, Corporate the now Miller, to to Vice conference. President Development to would over turn Cornelia begin I and Investor go please Ma'am, ahead.

Cornelia Miller

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

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

Mario Schlosser

Good evening everyone, for us. joining and thank you

We have remained Building towards profitability. our with ahead. strong at business, XXXX sets We a strategy something created scaling growth, record-breaking clear unique here focused tailwinds driving our and entered in and for we the operations on Oscar. years on

have changing on relationships. well-positioned to accessible, this affordable and business doing adoption increased Oscar clinical grew plus risk reduce costs, leveraging expenses. consumerization, to are our by we the operating The we're members, business and technology, provide on And deliver client medical delivering our towards both we built making to our our vision reduce believe better sharing, of and we to towards to capitalize more through technology We outcomes ecosystem's points for risk-based our and towards for We're and are a unique on surface. the healthier with all.

XXXX that's As Scott starts, some now. January going you well as shed we take will is XXth, QX XXXX recall, the to over themes dig for metrics To year through into as guidance our Scott. we come turn and call you results, those XXXX to would deeper preliminary will in key QX back Oscar will and then I and the full to But highlight financials, and like I XXXX.

Scott Blackley

through going I'm XXXX good to detail Thank XXXX guidance. and you, Today, afternoon, Mario, walk everyone. results the our more I will in and reaffirm

results. that are out call in emerging jump into I three Before I'll themes our the numbers, key

the existing are We ones. the strong in members of majority our new seeing traction retaining and

And progress. scale made and efficiency for on lastly, we MLR progress for great higher our with is opportunities have see We more there improvement. room

all membership. throughout consumers We Advantage quarter throughout key premiums towards the $XXX our members, of to EBITDA. to Medicare adjusted the non-recurring of an the results, of XXXX business in from recognized $XX shifts higher our the the select as excluded was XXXX XX% that driven to continue XX% thousand exceed Oscar's our our in Stephen, with ended and impacted XXXX. growth, year-over-year, Enrollment plans the to Fourth XXXX. we books of expectations growth retained million year-end had Special wind a rate as moving and a membership individual Silver year-over-year fourth largest assumed C-plus than results, continued more policy year-over-year quarter powering our our plans higher results, was year items driven well settlement, Turning which We by of membership mix increase growth XXX premiums of business million modest including direct in which onetime and of increases. net by members item Individual this increased XX% approximately as number we risk out year in corridor to

driven annual billion, direct over factors. For and to four years. past the by top-line XX% premiums increased growth the full-year, This more assumed represents same largely the year-over-year policy $X.X than XX%

Our enhanced in our greater scale drove businesses efficiencies XXXX. across

impoved points of ratio XXXX share leverage, the positively cost to year-over-year and in impacted drove ratio Specifically, basis our Scale company and the an metric. newest XXXX co-administrative our favorable benefits in fee points QX Health insurer the elimination XX improvement lower our also was insurance insurance XX.X%, year-over-year. XXX year-over-year, efficiencies, ratio Fixed-cost basis administrative XX.X%. health of full-year fee.

administrative year. metric adjusted quarter XXX which by for ratio, Our points. basis was full full-year XX.X% the in improved expense and XX.X% The the

MLR points Medical XX driven year favorable the of XXXX. recognized XX points XX in XX.X% year-over-year, favorable as medical utilization in offset some We and increased down benefited year was expected, XXXX, Loss our in third development of million by in to positive MLR as fourth Ratio to favorable the development. the from higher came from quarter XXXX, development. low basis fourth XX.X% partially quarter, The the due utilization and higher of costs of Compared by end at guidance of of XXX quarter to quarter and which the lower-than-expected prior largely growth net costs, was was in COVID full the we SEP our Turning development. XX,

Overall, were Let on me with expectations COVID. quarter in line COVID spend in a costs our 'XX. net moment the fourth of

utilization. continue being direct non offset COVID partly We see COVID to - costs by lower

administrative insurance Our overall XXX.X% The a in quarter COVID ratio combined in the full-year ratio, for net administrative Medical year-over-year ratio our higher 'XX and essentially in expense were on offset by as basis the XXX.X% Loss costs full and which was the combined is sum MLR. of flat the Ratio was company efficiencies the year. improvements

'XX million, better Our fourth million million adjusted increase XXXX, quarter for was $XXX $XXX was EBITDA year-over-year. $XX And $XX of it an loss million of year-over-year.

increase the in In premium impacting an XXXX of versus MLR deficiency release XXXX. to addition and the the drivers a reserves ratios had administrative we in year-over-year,

the balance us we funding start our investments, Turning two year. $X.X billion including investments $XXX balance We and provides sheet. billion we roughly of at over to at new cash ago cash that the weeks subsidiaries. of the announced strong the resilience company as sheet million $XXX quarter parent and cash ended with of another million investments and with in total insurance $X.X A

the We've our $X.X growth and that expectation This saw MLR billion, for $X.X also high-growth XX% as well still midpoint momentum we the a record had as XXXX includes than our to the I'd last baseline XX%. XX% improvement are year. at XXX while delivering our of guidance MLR scale improvement. at note an utilization of reflects builds to in non-core to policy driving billion points premiums the guidance, which more basis MLR business returns track midpoint reiterating of this our from year. strong in assumed levels to We assumes the increased on and direct

of decreased And Our annually direct XX period, XX% as seeing effectively COVID, while policy X our we past Oscar since fee-based costs. that are excluding we decreased million also years. in plus medical points, we to step four increased $XX our in on our revenue $XX MLR MLR membership the are change roughly results premiums points expecting business higher as a XXXX million during over XXXX. absorbed we We're average reducing

expense progress administrative scale top-line drive Our positive our momentum to meaningful continues and increased ratios. on

roughly has over we're Our improvement years, basis basis XXX points expecting adjusted expense points and another of the administrative past two XXX declined in ratio XXXX.

for ceded Importantly, consistent On which million, are the told reinsurance. majority percentage an that basis, measured All EBITDA are adjusted premiums relative a of on XXXX, absolute $XXX a before of roughly basis. between loss XXXX as an our in of we control. roughly half this midpoint these of costs is with XXXX and expecting million at $XXX is the

detail more And the let Our this look at our larger Investor XXXX the reaching to XXth forward to March insurance turn profitability Mario. scale for with is We call discussing in tailwind a target over our that, me company. Day. for

Mario Schlosser

works our of a for ACA new you, with Thank groups positioned Oscar. just our of today, deliver the I And approach, feel the found in U.S. that which Scott. summary Oscar's way of model for signs point Oscar success by monumental vanguard US also why rates we believe served member with of where retention We beyond. value served of our where in that that a with in of Enrollment And experience in will is XXXX have C+O a want engagements Advantage saw consumer-driven of markets healthcare firmly experience members staying to a we the and this delivered the are see provider and of plans with IFP a direction deep healthcare. plus with frictionless markets that in more technology in future. for season couples coupon XX% are in been this proving partnerships Medicare XX% industry-leading innovative XX best the healthcare And ACA in our with Open further and powerful will members. evident the record-high us in retention the real frictionless move grounds has X full-stack system our we the approximately The experience. now the in the resulted growth year-over-year. Oscar latest value I to above XX% be close we and is with

Our remains net fourth-quarter higher than meaningfully of and average reached XXXX XX score industry promoter of three. the

and product to driven by million in our plan, your Virtual for it, offerings. as strong Primary more or every offerings. examples Primary of the give And X made So innovation our product Care of members is where our our now you our We design we by number the number Group, Medical is it offering in grow a has have X and member just experience, than Oscar couple our resulting which market member's XX% brands, these Group on Care, plan available. X, see

their achieve at to growth claims offerings care decisions. in too with cost margins control updated can XXXX, estimator for for new to the periods, choice, price empowers it this came premium past which all also rates well, our member our to In recently You initiations our us of the and price overall rolling only from comes improve of XX% these level. and enable It's real-time We XXXX. fact market. that when increased open book and

So Oscar is offering. the membership we at priced plan individual if look our of now, and XX% total you lowest at is price And the where membership offering. is only where lowest markets

number for members, than technology. Now platform in unique year-end actually value year, had market which XX we in in pointed our we broker frictionless XX,XXX group for have the is find we're to doubling stakeholders and segments, small the members. also platform In of different bringing business from XX, delivering a at And successfully segments +Oscar clear example. us one businesses to +O have ex-growth XX,XXX small the our the nine the model highlights score outs other our clients. segments, our more NPS them. now We

+Oscar we We +Oscar continue this of Scott kind out said business, generates to expect as build + and

Mario Schlosser

$XX $XX in of million XXXX. million to revenue

applications clear has system. platform healthcare Our across the

of one clients XX% Oscar. our of in administrative realized and savings leveraging example, For plus

sharing We forward clients by are more our prospective upcoming on look Day. encouraged negotiations details during and our with Investor to this

motivates that see Medical couldn't the is promoter the best across illustration then score. in we lower our at consumer how of to of a a Loss and view, forward profitably. when and making affordable. that healthcare going model mission of business deliver us deliver on better our look path markets, of we me, all the Is to following: is higher healthcare going healthcare illustration more generally be the our my where consumerized accessible the Ratio, ambition our rising Oscar And to is Now, system of there

have XX said, swiftly of and to meaningful way and with on. provides young initiatives balance healthcare the In added membership with that's our we improvement recently, long-health EVP in operating Our efficiently is normally several including growth provider early still members strategic have higher we're we will and health, and more today ahead. ways Executive reduce Alenia, many engagement That former ways Officer, The branch, leverage CEO, Loss company Chief former to leverage over despite the Edna growth, the our PCR nearly that harness what improved by costs, healthcare Ratio. that the member last met scores Officer, we demand focused and most a with our still experienced oversight years, are and to we're opportunities as three to administrative we scale Chief executives a operate for sign plenty Legal efficiency seeing and satisfaction The Mark advisor. Legal have costs good member Medical new for and year-over-year. drive

I XXXX. want to close, strategic our XXXX reiterate priorities for and Before I

continue growth our target First, are Oscar are we over technology. as we the company we scale reaching and gain the seconds, plus drive insurance XXXX our our efficiencies those becoming before years. more insurance for to to with And to continue we company time, from across and level for will profitable both meaningful pleased overall at committed company business, profitability

Finally, our members for our to our tirelessly frankly affordable life I of working work during serve fiscal all. and mission team Oscar healthier toward and for Company public year a as want so a making to first

very the call of Oscar here, what team. to the together With Oscar every be by show and can proud by for say a the tenacity I creativity, day. we T-numbers the I'm to accomplish that, becomes powered in As we from inspired continue people our turn I'll as were operator dedication, over questions.

Operator

question please follow-up. limit Thank we constraints, Thank you. to and yourself compile time one roster. [Operator Instruction] Please Q&A Given the you. while stand one by

of Stanley. Ricky from line open. your with line Morgan Sir, first Your question the comes is Goldwasser

Marianne Scott

I'm Scott. afternoon, Good Marianne Hi. Yeah.

Surpassed exchange is my enrollment expectation your question ours. So on significantly. you've and clearly seen, that the phenomenal results

Ricky Goldwasser

need us going that or give milestone helped that see expansion expect growth? this that any opportunity? that sales contribution MLR on do scaling then from Can as look had you improvement you you do or the marketing you just and we ahead you XXXX, scale you achieve how to some color channels that you're to focus and And on now you and now have continued to margin from believe also, on

Mario Schlosser

They are great questions.

then there the and question as both have well. on hit on me Let Scott comment second

the grow So of product come as markets provider different in partnerships, brand deep well, numbers networks in of channels, and them, built word through mix and see right, of perfect say the design I'd the we in we've terms a different couple things. ideally mouth of being we got well. Generally, being where

best. So works that's it where

other the as is to Now, piece distribution this well. the

Baton fast in brokers we're times enroll. able turnaround to when bit them particular, with earlier their channel in with We help deliver work have group worked a they mentioned to [Indiscernible] the We're to And quite example, numbers us NPS and the the broker I they because for these deliver workspace. able the has It's our market of when have business, that us small been there. in of where this out been, any mix say. can't grow products, and in the take you the markets, brands, really the be I segments. distribution really also been That's -- helps of but all network, elements to got focus of equation would that's

in to we now. us only that. markets us states as and what One; half right we're we the runway +Oscar the And growth doing have will of continue and we keep our only more We're runway where in products, in markets A XXXX. goals to delivering ahead reaffirm I for really the insurance the Now, have want we're of company and an for SEPA be, for well, partnerships +Oscar, terms think of soap eight ton lot to focus of a we a CAT with two and in have are there. in growth so these of a to company is going ahead as we

insurance year. focus a as profitability, we next have the sure well. overtime we I truly profitability And However, company making overall target as company on great said,

that is in improvements right both Scott, do a is so of lot really now our to want as well. our going, where improvement efficiency in And focus add administrative internal you more?

Scott Blackley

No, Ricky.

that on sharing we'll Investor that about more be think point, plans information I our at in March. future Day

won't I jump that. So out of

Marianne Scott

you and the Okay. And talk +Oscar, the that to in a pipeline can about you you're what's the talk the the having, profile follow-up, as of if +Oscar you little think a bit companies pipeline? about are maybe negotiations

Mario Schlosser

about three markets health add Yeah. last some major talked to even heads, months. where risk into of in deeper we've want more pick which segments more It people really the kind a up and the the quite we've seen is go the who bit just before, systems is risk XX

The second those segment the of is now. have right several we -- examples and in pipeline

second systems is that's The mid-sized who pipeline that business, segment, the example, in as already in and segment and so to have third well. really it's the are as a enable risk and sort my companies -- the already this the outs, is in plan, insurance health In realizing the where we cost said going out demanding I prepared of them innovative [Indiscernible] put plan remarks help to here, both provide inevitably designs can more experience, taking where ecosystem there. more it's

are right in so three pipeline now. these And all the of

from model well. how in software-as-a-service concerned we where And some, the And this are as excited we this a both about couple will for model we're year. next a also process-as-a-Service increasing towards And of where years. go that Business

Operator

Bank with Fischbeck Thank you. America. line The from the comes of next of Kevin question

Your line is open.

Adam Ronn

SG&A We talked about this surprised by fact the that we This last therage. is membership I a on you know such for more Ron with Hey, for given were grew the little time Kevin. pace. weren't getting XXXX guidance, that Adam leve thanks at you rapid revenue a question.

most leverage here, base, chance dollar cost actually a higher decline? there is that basis CCAR come underwriting going revenue or the a on to the from so could on from of SG&A expect same that you And would actually forward it

Scott Blackley

for We Yeah. help achieve scale our XXXX saying going start our Excuse on leverage and to that negotiate vendors. that that cost me. costs seeing with better going we're variable by I question. forward. greater Adam, to better is the us in our I'll can out think costs fixed thanks cost

opportunity opportunity fixed-cost leverage and optimize to head we further We as the next for have to our an even operations continue into year.

see beyond the side available we certainly the into So future. cost opportunities on increasing what's from what just -- revenues

Adam Ronn

All not, right. that think were you Great. in would to you shrink, XXXX, up And if lower environment? subsidies ultimately leverage the achieve would would drive better do able end that in then overall to to And marketplace And on SG&A Insureco expiring, grow your exchange hurt potentially and there be membership profitability? are if scenario that and MLR? offsets also, like meeting any that ability

Mario Schlosser

thoughts Yeah, Adam. plus so that I'd say different One several are now and is, deals on. have Oscar a couple lines business growing. this [Indiscernible] on one. we different

think a do are there, sense in diversifying ourselves we I So that helps.

The the second that might regulatory if volatility just us. a for it had maybe of point, highest [Indiscernible], be looking company you're environments, has

proven very on, it's true, unlikely benefits can't very, I count turned through few like them we is and on. that get so million-plus ACA to generally be Over anymore. even ensuring the I What think XX not of have have last the years, it people, back cycles has now to a we clock lived ACA off. many believed,

loading were will years perhaps. deal similar them we in through cycles. have and in so these there, remain under would assuming CSR that. replaced me generally and strong we I of be always will shape And over some them by we're silver improved happens subsidies where form have makes names and shape lived have that what Plenty there, very with That's confident however, repeat throughout to things believe cycles, we could. like certainly also or that different we or place subsidies subsidies And or appeal some form, if which some through very somehow it's followed these

react by been and building quickly. And there's regulation, our want fly flip be we I that think new regulatory we towards here. healthcare might there to inevitable think to what testing there system it partly would that there. like, we'll internally I and reimbursements, point switches more final same through march our that a come quickly. adapt if more consumerization, don't example, of platform stopped a of a and is I is for couple react any it, the to really, to way it, because the very of think quickly can If able we've applies the And be change,

Scott Blackley

able say on scale, to what grow your is in to still that opportunities to to Just we pile on I to additional model. there we built would that so create but we one, the think -- see continue side, growth about to efficiency just our the questions that think regardless company of in be are leverage

seeing base. to, that I to And of be so our as we're even to anticipating fixed-cost be that. at scale fixed improving And both as with costs, continue starting going -- that at another to we able that able in would vendor that I'm we're to larger I going be leverage. operations to 'XX, am against variable see we're be to going that going to we're anticipate that we question, cost. to see to are optimize will that And deliver opportunities 'XX, drive is well cost significant able -- mentioned expecting to I we able that as down that the And in means continue

Adam Ronn

Great. Thanks.

Operator

Your the Wells Baxter next Fargo. from of with question Stephen comes line

is line Your open.

Stephen Baxter

and product adjustment up? your shaping you also and your of And how move ended is XXXX position into from you're you bit and Can like specifics a impacted for up you. bronze how thinking love and a tiers mix, to in you where Thank then there would Hi. metal Any hear that guys reminder about the very little [Indiscernible]. of by breakout are on exchanges up shaping your how risk for XXXX talk about. that's XXXX. would for silver as about hear I'd XXXX I little to be Do thinking how more I mix bit Yes. about helpful. just is your changes? like would you a Thanks. terms

Mario Schlosser

of tier We this we towards the part more average a about a risk risk towards higher Stephen, bit most mix, payout of ill the in of dial well. about to before is very adjustment. quite that of IPO and then, membership we PMPM as can book and done would think well talked with members the the our and as and And Scott, start return some higher of Yeah. higher this a I membership, with PMPM, therefore successfully. the for lower Bronze remember the you middle result. membership that that been in chronically has were march market profitability actually talk time we've And even as

an If now OEXXXX three think in you silver XX% to trace XX% just to years, in the OEXXXX. be to to it OEXXXX last silver been we've

Ricky So to a with these on. shift PMPM branding, I That's the of server which we put factors had doesn't need higher a is We into these gave what very plan I mix what again distribution, work same our nice plans earlier, design, there. clients.

So for So shift really important us. been -- on that's there

to from to continue in revenue we goes this that see the than swing comment always same pursue head the revenue the way. faster as that so also up PMPM we're push You going grows in will that in account there. continuously And numbers

and very change Now, also focus confident there value designs in that designs well. our some can as tiers those bit are other constantly plan there add we in of a have plan and also

Scott, that So about you as maybe can be well. talking

Scott Blackley

primarily that expect basis. ongoing the And terms of on improvement of towards with performance 'XX, that we've in terms in to assumed strong I in we'll -- direct as and an of say percentage would of I policy further percentage of seen And RA in I silver, And we some see a just item. adjustments as the premiums, expect would in would see We've improved slightly line had adjustment, risk XXXX. would that. see changing that expect mix saw to a more RA

Stephen Baxter

it. Thanks. Got

Stephen Baxter

just to second then the quick as And a question. follow-up

just that we you're the to margin, contribution? about bringing Just And guess think the about the the to be thinking cost expected incremental in Thanks. that's up contribution any XXXX, how we I are ramp the fee-based even revenues or a be through profile into online? how revenue, expecting of expected incremental I revenue year, as insight guess more should margin that is

Scott Blackley

Yes.

the we're fee-based fee-based On throughout started first help I would January our throughout revenue, And year. expect business, able fee-based of book drive hopeful so revenue stable to will that that C-plus continue on scenario on and up where just contract be revenue increase the going in then relatively say we'll That's to year. to that and Xst. ramp to to be we the

I expecting would the starting the So is look, I the to margin margin, that fee-based that in we're I that first just contributing bottom would say throughout year. that positive say growing in general, it's going think but to line, be revenue On that quarter. stable

positive positive seeing returns and contribution And business EBITDA. we're that generating so adjusted to

Stephen Baxter

much. very you Thank

Operator

Sir, open. the you. line of is The Thank question Credit next with Yong Jonathan Suisse. line your comes from

Jonathan Yong

effectively a within difficult today details tier. question. just the of the Silver in mix and your on to they something Silver. Bronze tiers there? Obviously, more peers difficult exited Bronze for structurally thanks to that's the percent there called taking for side moved the -- to that where one the Thanks all it's of out make Wanted money Is

could eventually re-expand what's structural to or issue all from you more Bronze right really and perspective, you I'm into there, it shifted Silver, is now? have So your a given curious just the Silver game

Mario Schlosser

answer You compared right? in couple fist. it's a to PMPM to make trues It difficult bronze me is with as -- a this money here so read facts silver more have below. for reasons. of a One generally, adopt we it is structurally So let part bit number that lower to

the also that a members risk worse But higher sort attracts piece And other gain, one tend average be that don't having then actually effects, utilize members reutilize also churn actually have who And speaking. more it is second amounts relatively rates. adjustments, part that of who is members is like, speaking, sense. for a The lots. whole is to relatively those who in has two that

probably marketplace like chase price more there past, of to was going finger to XX% maybe so really. of on plans. marketplace, so the ACA XX% is that the plans a the is from And a the that it's year, put chunk sort of year and lowest it's In easily to changing to hard

And a as we and [Indiscernible] should be you considering more so that well. have bit

and a would They've new. Now, those are we've these say, been past number new in found not of place effects in for antidotes, years the I effect.

example, that meaningful in actually Primary designs we're in more to think plan attractive Care is what For doing bid we of Bronze. some Virtual

And we're deductibles, plans. some elements have around so doing our in certain what design plan other Bronze we

some those Bronze up in has PMPM the shift shift helped the of tier. And us

X of not in obviously, retention rates average than so into retention different I utilizing not mentioned when if get in even of business is so whole book with digital that you time Bronze out engage think plans the the healthcare either. points And our any last is a lot, we member generally a get year. members we who higher I digitally us space have that them, about That member the higher interactions,

else going these together, things have all what in years creative with and in of comfortable ideas do them we're tier that the so And to forward.

Jonathan Yong

a at the assuming It'll levels. baseline mentioned bit non-coffee That's And Great. gradual is at expectation that you this then you more utilization. of year. be an have helpful. I'm being over

Just up there view of any subsides? Thanks. want And care COVID as deferred that. is stepping to confirm

Mario Schlosser

better about, I would a this Yeah. With XXXX. we for things margins. respect MLR, looking say at One, we year, to as talked few the priced

of assuming endemic trends, and we cover we're we've spend. for an So COVID level to priced priced that costs

going factor us. that's a positive be for So to

COVID starting to when Omicron would I just Secondly, we've think seen, we about say as that fade.

of that the And some off. dropping effects of

We are our of having based academic on level an COVID in assumptions.

are rest we subsides will expecting seeing We utilization Allied analyzing from throughout COVID one that of non year. see the - the

And having lesser and a the have book, saw. primarily COVID us advantages this in from have drive points by some MLR, on opportunities the think we will basis to anticipating shift at well. improvement scale. a larger driven of again, opportunities some we to also 'XX there's then improvements continue of going we're we point, that STP the and for to MLR I'm XXX have year-over-year some things structural other number to And basis about that as So of in degree, a 'XX about between

Yeah. So catch-up for that points two have are example, to key in those cancer we past I number, the change. lot diagnoses One little of we year-over-year are have very refresh interesting. that as same think a about talked seen XXXX, here, the cancer at that the 'XX. a is we 'XX And well. on as stats, more drive in rates, going look the points in level much been that find Maybe I not then metastatic if and add

worse caught So these there somehow not that burden's up of there's a getting because evidence chaotic lot get too.

on. we utilization hyperinflated in The out is that came too they ER early they on, have early bit the CP year other point when pointed year last utilization last higher a if members

talked data a very not I of care similarly, the and when about a population point XX% either, that there of of last as is retention market there very into now would and have year lot the there is behaving wonder coming the cost the is can evidence the SCP certainly did lead that we - what the actually you watch it and that on going new we closely. there so is decent was and is that this that sort do, like SCP say that retention will of And that non folks would a in folks you rates the different therefore year about. was one not those different that appoint as And why to same segment that

with that amount I of a we our that with engagement also members fair think and the provider the so on. do for enablements

Jonathan Yong

Great. Thanks.

Operator

Thank Nephron Josh ahead. Please line with go of you. question the The comes Research. next from Raskin

Josh Raskin

give consumer specifically public, give the us you engagement. Thanks. were in I Can you you sense -- MLR by NPS heard digital expectations the with that correlation? this, you us on And My correlation Good that's going you I'm engaged guys a that digital evening. could engagement digitally and are when data differences all, Mario, those then versus any you demographic talking question's think some you but about are were a on gave are consumer interested and in at guys an around and engagement, not? terms us side. the a I there correlation of if finding in is but changing or XXXX? sense seeing

Mario Schlosser

Yeah.

higher -- still SEP, influenced mobile quarter Just we members in anybody insurance still year. downloads that's fourth app time to app examples, will last insurance here, membership pretty of if base, -- statistics, we digital -- And we of ready, digital they And some have and people -- a much XX%. the else talked And of in the to [Indiscernible] we've in -- to still last tell. [Indiscernible] who that in. few if industries create in obviously health out mobile else need a weeks So terms in probably for indus going engagements at where much will past ago, always download that's run profile, the app create are you there a the how about by have XX% look can a come then

App So some that look at Store things there. and like

those age there engagements. terms drive we we across of how ranges, Where that's an looks in so how impact. the that is So -- --

their overall seem probably younger engagement at Oscar, can digital have having look up for You the then or lower we about the segments, end example. conversations XX-year-old with that XX% similar But in to compared [Indiscernible], more there. they if to as engagement because with the then XX-year-old pretty so segments

of of well, want and nice at beginning other that having members all doubled to is statistic got since reiterate as we year, again conversations with in is we that this if this we've the had call, earnings The meaning average for membership base conversations look those messages that mentioned and and the last of I effective between membership or mobile that the conversations member older year, beginning those guides on the app year and of a care XX of XX% the and insecure shifted celebrate were towards more all the [Indiscernible] [Indiscernible] the website. I

engage I had segments do is a interesting outbound I that membership there's engagement so who is proof messages for about think And well. just can base XX% the outbound latest is you as powerful basis, engagement They messages. number new also with have gets point's. number very as of a right-of-way to weekly text our even think members we love of can that one on High sense, in And I we there. a pay an very a and

in mentioned things you mentioned that. app and mobile like As the

very consistent. So so again,

MLR, sort at on to and of piece like of impact the look like the directly more through Now nuance detail in there really one we in tracing data.

towards in basis. down. more I year We they designs, look photo year an I of cost Care Virtual there plan about virtual it for by the consumer moves XX% we that came so, last because a now, at was as have that of better, think that's of time our board that and drugs of referral that getting by more were effective PCP. you view have say starts specialists, to having the have we the example, Oscar, and that gave, care Primary on when Virtual opportunity coming And I are cost and number also MLR on PCP the numbers efficient with members why essentially they suggest a on impact a those didn't And point there seeing shifting from before through, downstream well. or anything And monthly is for efficient more the

good do And there. a I couple there's as the keep with So MLR that's next in they news of we've of this grown opportunity for couple are we're as in how But our year. at more to a very the on going bit of you years. the that mentioned, same well. couple really, base really that And We're of years. membership in time on closely really view gotten the happy quite of last working to points continuing

Josh Raskin

Great.

just difference I know this should accounting think follow-up data me, And in engagement. XXXX PDR down or can would what know any -- side, over that, super I was MLR that the is helpful of quarter the this and change there? the remind last it felt expectation like and to indicative in be versus was year understand that you months the was for quick three the a I on just last up QX

Scott Blackley

reserve think our outlook Yes, performance business that related better in XXXX, and really right. book. is. fewer PDR general the 'XX. built plans PDR, would it that our our as had a had that was And the for I release a we that We towards We're its I things, non and we split XXXX between XXXX individual them. we're and we XXXX. then smaller in build represents just results PDR. say related was at so as more really expectations reserves And certainly scale talked PDR we've to you're had getting Obviously seeing two as had Individual that haven't just That's more about fact in M&A to in that in related efficiency of across --

of end that that the that's of at accrual, driver XXXX PDR you got of in And a the amount just the accrual it's back. So lower see really change the PDR a why batch. still there's

Scott Blackley

Exactly you got it.

Josh Raskin

think That's the to you. way

Scott Blackley

we the of got sheet $XX We've the had million end balance XXXX. the about at end $XX million Again, of XXXX. at

Josh Raskin

[Indiscernible]

Operator

be And Sachs. this will And last Thank with question. ahead. Please it will you. be Goldman Rich go our Nathan from

Nathan Rich

Hi. Thanks afternoon. the for Good question.

on members reach years, On you you of the second needs seen to you're the and cohort The relatedly trend or how business us MLR, and and Mario InsureCo? could Scott, tends to for the that what third MLR there data with Is a to you've profitability you achieve like in -- update the level target MLR feel are in? the

Scott Blackley

Yeah.

us you in membership members accrues the to new is, that numbers data general to at we that if near-term MLR, with broader not feel And population, think think first is pretty there's their on grow have would population like perspective, about into be a with members certainly those that new So and as amount how consistently got and the And about etc. nothing a that to manage getting come over been year, say these so how confidence there, difference that kinds performance huge and in see near-term respect I and we that call would and the time. our are in on out. a bit to have that there's on-boarding continue see pharmaceuticals, I that this to a their in over little into we we're low MLR good stabilize new we actually record able physicians able of book, the the starts then a time, that going of track then so members experience there MLR. I with these gives of we've bring to routines

Nathan Rich

Thank Great. you. Okay.

Operator

Full-Year participating, Thank you. you Health this disconnect. Fourth Call. may and Conference Earnings you Oscar for now And concludes Thank Quarter XXXX

Oscar Health (OSCR) 11 Feb 222021 Q4 Earnings call transcript