Oscar Health, Inc. (NYSE:OSCR) Q1 2023 Earnings Call Transcript

Mark T. Bertolini: We will be growing the footprint beyond where it is today. So we’re looking at new market entry opportunities. And that’s what we talk about when we talk about sculpting the portfolio. Where should we be, where we shouldn’t be any longer, how do we change the portfolio to get the best return as possible? But I think underlying all of that is the scale that we now have should be brought to bear on the operating platform and our contracts with providers. We recently, as I mentioned, renegotiated our contract with our PBM partner with really good effect. That’ll be something that we continue to do over time as we look for opportunities on the contracting side, look for opportunities on the operating side because a lot of the operating opportunities at scale should be generating more internally generated capital for us.

And that’s what we are going to grow the bottom line for next year. And at the whole co level, we’ll be paying attention to our spending. We’ll try and keep it in line with growth unless we find real big opportunities in the +Oscar platform that we can use to gear up growth for the future.

Sid Sankaran: The only thing I’d add to Mark’s comments, its Sid here, is really we’ve given you guys some guidance in terms of what we think a target MLR for the year is 82% to 84%. An important metric we look at is roughly 80% of the book for policy year 2023, we expect to see within that range. And one of the largest markets that’s outside that is California. And so, from that vantage point, I think, we are very far along in terms of what we’ve done on portfolio sculpting, because and I gave you that same number for last year. It’s probably more like 60% to 65% in the book would have been in that target MLR range. So we feel very good about the progress and we feel good about the strategy and execution as Mark highlighted.

Nathan Rich: That’s helpful. Thank you.

Operator: . There appear to be no further questions. That does conclude our question-and-answer session. It also does conclude today’s conference. We would like to thank you all for your participation today. You may now disconnect.