Oscar Health at Wells Fargo Conference: Strategic Path to 2026

On Wednesday, 03 September 2025, Oscar Health (NYSE:OSCR) participated in the Wells Fargo 20th Annual Healthcare Conference 2025. The discussion, led by CFO Scott Blackley, highlighted Oscar’s strategic efforts to manage utilization trends and navigate regulatory changes. While the company expressed optimism about its financial outlook, challenges such as potential subsidy expirations and market shifts were also addressed.

Key Takeaways

• Utilization trends have moderated, aligning with expected risk levels.
• Revenue guidance was raised due to growth in member months.
• Oscar is preparing for the potential expiration of enhanced subsidies in 2026.
• The company leverages AI to improve cost management and member engagement.
• Oscar aims to balance market share growth with profitability.

Financial Results

Oscar Health reported moderated utilization trends throughout Q2 and into Q3, aligning with expected levels. Member losses due to failure-to-reconcile (FTR) and dual enrollment were modest and had a neutral or slightly positive impact on the risk profile. The company raised its revenue guidance, driven by growth in the first half of the year. Pricing for 2026 considers various factors, including the expiration of enhanced subsidies and market morbidity shifts. While the Medical Loss Ratio (MLR) is expected to increase in the latter half of the year, it is anticipated to trend more like 2023 than 2024.

Operational Updates

Oscar Health has shifted resources to address utilization targets after elevated levels in Q1. The company focuses on affordability initiatives, including fraud, waste, and abuse tactics, to ensure appropriate claims payments. Efforts to enhance member experiences while maintaining operational integrity are underway. Oscar continues to engage brokers to communicate changes effectively and reduce friction. Despite challenges in moving capital between legal entities, Oscar maintains an adequate capital position and access to leverage. AI and technology are leveraged to improve medical cost management and administrative expenses. Investments in the ICHRA market continue to drive growth.

Future Outlook

Looking ahead to 2026, Oscar is preparing for the potential expiration of enhanced subsidies. Constructive conversations with regulators are ongoing to ensure appropriate pricing strategies. Oscar aims to maintain a competitive market position while achieving profitability. The company remains cautiously optimistic about the potential extension of enhanced subsidies and is prepared for potential disruptions during open enrollment. The ICHRA market is seen as having long-term growth potential.

Q&A Highlights

During the Q&A session, Blackley clarified the moderation of utilization trends and discussed the impact of FTR and dual enrollment on membership. He detailed the factors considered in the 2026 pricing strategy and provided insights into Oscar’s competitive positioning. Updates on regulatory engagements and the potential extension of enhanced subsidies were shared. Discussions also covered the company’s capital management and cost of care initiatives, highlighting the potential of the ICHRA market.

For further details, readers are invited to refer to the full transcript below.

Full transcript - Wells Fargo 20th Annual Healthcare Conference 2025:

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Yes. Good morning, everyone. Steve Baxter, the healthcare services analyst here at Wells Fargo. We are very pleased to have Oscar help us today. Oscar is one of the largest players in the individual or exchange market in addition to the aspirations it has in ICRA and other areas of platform monetization.

From the company, pleased to be joined by CFO, Scott Blackley. Thanks again for being here. Any kind of opening remarks you’d like to make or should we just kind of jump in? No, just jump in. Okay.

Great. So you put out an eight ks this morning reiterating your 2025 outlook. With the second quarter, the company discussed seeing an improvement in utilization trends. So maybe utilization is the best place to kind of start here. As the second quarter has developed more, what have you seen as completeness has continued to increase?

And any kind of early comments on Q3 related to your reiteration would also be appreciated.

Scott Blackley, CFO, Oscar: Yes. So as we talked about in our second quarter call, we saw utilization trends moderating each month throughout the second quarter. We have seen a continuation of that moderation to date into the third quarter. So fundamentally, we are really seeing utilization trends, which have almost gotten back to what we would have expected for the risk in the book. Nothing about utilization is causing us to be anxious about kind of the core performance of our book, which is a really good thing at this point in the year.

In the second quarter, we have seen the effects of the second leg of failure to file and reconcile that population. We did see some of the members that lost their subsidies. We saw that happen on We’ve this also seen in some of the dual enroll population that has happened now. And in both those types of issues, we have been pleased that the amount of membership loss has been modest, immaterial for our book and feel like those are good trends for market morbidity for ’25. Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And just remind us on those two factors, in particular, the dual coverage population and the FPR population. What were the expectations going into the actual event? How are you guys thinking about sort of the underlying financial characteristics of that membership? And then as you’ve actually seen it play out, what have you seen?

Scott Blackley, CFO, Oscar: Yes. Well, starting with dual enrollment, very hard because we don’t have the data to know what So that population we got a list from CMS that was just under 50,000 members in our book who were dual enrolled. We now have seen that about 18,000 of that 50,000 lost their subsidies. So that’s happened. If you think about that overall for the market, CMS has said there’s about 500,000 lives in the ACA who are dual enrolled.

If the same kind of statistics that we saw in our book apply to that 500,000, that means that 183,000 ish people would be leaving the marketplace. So really a pretty modest effect. The other thing that I think is interesting is that the risk characteristics of the people who we are losing are slightly high to kind of consistent with our overall book. So it doesn’t look like a really big headwind for market morbidity. Same thing with FTR, the population that we’ve seen leaving pretty much neutral to our book, slightly positive to the book.

So both those factors, we don’t see at least if our experience is consistent with the marketplace experience, we think those are pretty modest to slightly positive developments for market morbidity.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: So you had planned for them to potentially be worse and it’s a little better or is it just in

Scott Blackley, CFO, Oscar: Duals the kind of it’s hard to plan for that. I think that on the FTR population, we’ve been pleased with the number of people who actually completed the file to reconcile process, and we’ve retained them, and we’re excited to have those members.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then trying to obviously, there’s a lot of moving parts looking at the MLR because of what happened with risk adjustment in the second quarter. It helpfully provided us kind of like normalized numbers for Q1 and Q2. I think as we look at the progression from Q1 to Q2 on that normalized basis, I think people are having a little bit of trouble reconciling the jump there versus commentary around seeing lower cost trends in the quarter. So maybe just help us think about the right framing for MLR in the first half?

Scott Blackley, CFO, Oscar: Yes. So we expect MLR in the back half of the year to increase in the third and then the fourth quarter. I think that the MLR seasonality will look more like ’twenty three than it did The ’twenty dynamics of SEP growth this year versus what we saw last year in the 2025, we did see a pretty strong amount of SEP growth. As you know, the SEP continuous SEP for individuals at 150% of the federal poverty level has ended. That ended at the August.

So we would expect less SEP pressure in the back So half of the again, I think that what the progression of MLR, we think, will again look closer to ’twenty three than what we saw for ’twenty four.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Okay. Definitely, I feel like the expectation of something closer to normal makes a lot of sense. I feel like the one reconciling item you need to think about is this expectation or possibility that maybe people are utilizing more services in the fourth quarter in front of the expiration or potential expiration of the enhanced subsidies. How do you factor that into your thought process? How do you go about even developing estimates for what that could look like?

Scott Blackley, CFO, Oscar: That is more judgment than We did build an expectation into our full year guidance that we would see an increase in utilization in the fourth quarter from those factors. Things to think about though is the average age of our member is 38, 39 years old. So we don’t have a whole bunch of people who are sitting there waiting to get a hip replacement or some other piece of high cost. These are generally healthy people. So the likelihood of we may see more instances of people going in to seek care from a cost perspective, it’s hard to for us to see that being really, really significant, but we have built expectation that we’ll see some of it.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Okay. And as you think about maybe areas of offset, I mean, I think when we look at what’s implied by the back half guidance, I think we see the normal trend that you’re kind of discussing on the MLR line. It doesn’t feel like it’s as easy for us to see that there is a large provision for something like that. Are there things you’re doing to offset those costs or pull forward affordability?

Scott Blackley, CFO, Oscar: I think we talked about this in our first quarter call. We start out every year with a list of levers that we don’t include in our guidance, right, the things that we would do if something goes bump in the night. And think of this as kind of resource allocation, Like I have people and technology and operations that can be doing task one or they can be doing task two. And as we saw elevated utilization in the first quarter, we pretty much flipped all of our the spend that we can do that where we have choices of where to allocate resources. We move those towards utilization targets, and we’ve certainly seen the benefit of that starting to work its way into the results.

That is a big reason why in the back half, we would expect to see less of a rise in Q4 than you might otherwise expect from that elevated utilization. These are things like fraud, waste and abuse tactics that we’ve been working on, just kind of the blocking and tackling of operations where we’re all about making sure that our members have really good experiences with us. So this isn’t an effort to try to do anything that’s adverse to the members. It’s really making sure that the claims that we’re paying are appropriate, that they meet all the contractual provisions that we have with providers. And we see we’ve got clear line of sight into those affordability initiatives.

Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And as you think about the progression of membership throughout the balance of year, obviously, you’ve given us a little bit to work with on FTR and some of the duplicative impacts. I think as we look at the fact that you raised the revenue guidance with the results that you put out, the first half I think annualizes a little bit below kind of the low end of the range. Just trying to better understand like what’s happening with membership progression to drive revenue into the guidance range throughout the year?

Scott Blackley, CFO, Oscar: Sure. Yes. I think that the thing I would say there is when we look at revenue, we look at kind of per month how many member months do we have. And as we have seen growth throughout the first half of the year, the member months in the first half will be below the second half just based on the fact that we grew. We do expect membership in the back half by the end of the year from the second quarter will probably be modestly below the second quarter amounts.

Notwithstanding that, you’ll see more member months in the back half of the year than the first half of the year. That’s really the source of why our guidance is what it is. Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Got it. As we start to think more about 2016 and the refiling of rates, I guess as you 2026. 2026, yes. Hope I said that right. As you look more at 2026 and the refiling of rates that kind of became necessary as you saw the environment this year, I guess how is what you’ve seen so far this year on the morbidity shift influence what you feel like you need to ask for 2026 beyond just fixing this year’s issue?

Scott Blackley, CFO, Oscar: Yes. So I think the way I would characterize pricing for 2026, we started off with what do we think trend is going to be and we are all trying to puzzle out how much will tariffs impact kind of core trend excluding all the other things that are out there. We would expect that, that trend will probably be towards the high end of what we’ve seen historically given that. So we plan for that in our pricing. Then you build on top of that the ’26 expiration of subsidies, build that in, then you take the what’s going on with the effects of program integrity, put that on top.

Yes. Then you look at, oh, we have this market morbidity shift in ’25, put that on top. So the thing that we have not tried to be really precise in is figuring out where those things might overlap. We’ve more stacked the risks and built that into pricing. So we feel like we’ve been the we feel like we have visibility into the things that are changing.

And those what you can’t do is to price for something that you don’t know is going to happen. I feel like that kind of happened in ’twenty five that some regulation came in after we had priced that drove a bit of the market morbidity pressure that we saw. At least this year, we feel like we’ve got good visibility into what are the program integrity measures that are going to be in effect, what may happen if enhanced subsidies lapse. So all of the pricing kind of has built up those risks. From my mind, the risks are that some of those bad guys and when I say bad guys, I mean things that would cause the market to shrink.

The risk is more that those don’t happen, perhaps enhanced subsidies get extended. We look at all of those things as probably net positive to our pricing. So that’s the way we approach pricing. Turning to the conversations with regulators, we believe that our pricing is substantially complete and final. We’ve had really good engagement with regulators in almost all of our states.

Had really constructive conversations with regulators. They’re very aware of the set of circumstances in the market. They want to ensure that there’s appropriate pricing for the risks that are being taken. So we feel like that we’ve been able to get the pricing that we think is appropriate given the risk that we see. Obviously, prices vary from market to market.

In the states that had significant amounts of new lives coming in through Medicaid redetermination over the last several years, those probably going to see the highest increases of prices in the states that didn’t see that probably lower, but still kind of even in those states higher than what we’ve historically Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then just in terms of obviously, there’s a lot of components going to the pricing, but I think with the most critical seem to be the assumptions around the EAPTCs. Like how do you go about like philosophically looking at it on a market by market basis and estimating this is what we need in Florida versus this is what we need in Texas versus this is what we need in Georgia? Guess what are the key assumptions that are underpinning? Like what do think is going to happen to the market as a whole in 2026 to inform those Yes.

Scott Blackley, CFO, Oscar: Well, we are basically for a while, we have just planned that the subsidies the enhanced subsidies will expire at the end of this year just from how to run the company, making sure that we’re prepared for that. Each market is going to be impacted differently by that. I think that program integrity is overlaps to a with the effects of just having the expiration of enhanced subsidies. The combination of those two probably causes a bigger reduction in the size of the market than just losing So the enhanced the way that we’ve approached this, we look at what is the how many people are going to lose subsidies? What’s the likelihood if they lose their subsidies that they will be able to find a product that they can still afford?

And so We go through that process. These people are going to lose their subsidies. They’re going this portion of them will leave. We then look at for those who have some price shock because their subsidy is going to change by some degree, is there a product that they can migrate to that has a similar out of pocket premium? And one of the things that we did this year is to try to ensure that we had plenty of alternatives for our members that if they were in one product that had this out of pocket premium that post the loss of subsidies, they would be able to migrate to a different product that may have a higher deductible, a higher co pay, but similar to lower out of pocket premium.

And so we’ve tried to position our book to allow people to migrate to where they can retain their insurance. That’s also embedded in some of our assumptions. So we feel like we’ve built all of those risks into pricing, and we used a lot of our historical experience from price shocks in the markets where we’ve been in to see kind of how behavior was influenced. The other thing I would say is that we’ve worked really hard with our brokers to make sure that messaging to members is ready, that the members understand like, hey, here’s the new program integrity things. You’re going to need to provide this additional information, can we get that information in advance of open enrollment.

So we’re trying to do everything we can to make this as efficient a process for the members we can, whether it’s things that we can do like plan design or working with the brokers to make sure they are prepared to message the changes to the people in the marketplace just to reduce some of the friction that otherwise might happen.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: There’s obviously a lot of focus right now on trying to benchmark the rate request across different companies and trying to get a sense of where market positioning might shift given how sensitive things are to who is the second cost silver plan in the I guess as you’ve gotten more data and been able to see more of like what your peers are requesting for rates, like when you step back, like where do you think you sort of fit in terms of the rate requests that are being updated? And then when you just think about broadly your market position in 2026, where do you think that leads to? Right.

Scott Blackley, CFO, Oscar: Well, I think that it’s a challenging time to for external parties like yourself to get good visibility into where prices are, because a lot of the data that gets has been populated on healthcare.gov is it’s either missing, so it doesn’t include any new plans that you put into the market. So none of that is included in that data set. And even some of our plants that we had that we’ve repriced doesn’t look like they’ve captured that repricing. So I would just be cautious about the utility of the current information that is out there. So if you wrote research leveraging that, I would not say that I would find that particularly useful.

Just stepping back, we try to get information on where we are vis a vis competitors. We do all the things that we can legally and appropriately do, FOIA requests, information like that. And in conversations with regulators, you don’t get clarity on like who is where. You just get a general sense of where you might be position wise. Our emphasis in pricing this year, obviously, we wanted to make sure that we were ahead of all the issues that we have been talking about So today, we did not price with the assumption that we wanted to be super competitive.

We always try to balance our ability to continue to grow our market share, but we also have a significant objective ensuring we get to profitability next year and that we see meaningful margin improvement. So I think that pricing is always a market by market thing. So when I look at where we believe we’re falling competitively, I think we are kind of there are some markets where we feel like we are really competitive, but there is other markets where we are not on average. I would say I feel like we are nicely in the pack and that it will give us the opportunity to have an opportunity to grow market share. And with some of the carriers leaving, we think that’s a real opportunity.

And then also we think that we will return to profitability and we will be able to see meaningful margin expansion next year. So it I am comforted by all the things we have seen in our most recent information about 25 utilization. It doesn’t look like we are seeing runaway utilization. FTR looks to be less impactful to the market than I think many have feared. Duals, not quite the population that actually is leaving not that significant to the overall marketplace, probably less of a risk to ’25 than many had feared.

So I kind of stack up all these things and it’s not usually the calling card of CFOs to be positive and feeling great about things. But I look at those things and I look at the pricing we’ve done and it really does give me some confidence that we’ve got an opportunity to have a really soft landing in ’twenty six in terms of financial performance.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then just to expand a little bit on the role of the new plans and how different that might feel for 2026, obviously, we can’t see those prices yet. Like how do we think about how much of your enrollment might be shifting into plans that are new? Generally, like is there any difference in sort of the profitability profile you’d expect in newer plans and whether that takes time to improve or are those immediately going to demonstrate the improvement assuming I

Scott Blackley, CFO, Oscar: would say, the plans for you and I, if we sat there and went through them, they might To look really the consumer, they don’t look that different. It’s more of the story of how you explain, okay, this plan has this premium and it has this set of benefits and it has these deductibles. And we tried to make sure that we had multiple options for people who may be losing subsidies that they could migrate to things. And when we do our plan design work, obviously, is different financial performance across the metal tiers. We try not to let them get too divergent because we want people to be able to move out of this one to that one and not have a meaningfully whether just we don’t want there to be too much volatility in our results from that.

We feel like we’ve got plans now that we’ve priced and put into the market that are easy to understand. Again, we’ve worked with the brokers to make sure that they understand things. But I would say that’s less risk in terms of people not understanding the plants or selecting the plants and creating different utilization framework, and it’s more just making sure that people have choices across metal mixes, that they have choices across the right level of out of pocket premium that works for them. Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then just to come back to the regulatory side of things, I think initially there was a lot of talk about, hey, we’re submitting like dual sets of rates. Like it feels to me a little bit like maybe we’ve moved off of that at least in some states. Just trying to get a better sense of, I guess, you still filing dual rates in the majority of your states? To the extent that you’re not, like what do you understand would happen if there were to be an extension of the enhanced tax credits? Yes.

Scott Blackley, CFO, Oscar: I think that in the end, it was atypical that states asked us to file rates with and without the extension of enhanced subsidies. So very and I would maybe even go further to say our largest markets didn’t ask for that. So we’ve had lots of dialogue around what it may look like if those enhanced subsidies were to be extended. But I would say this, it certainly feels like there is more momentum in thinking about enhanced subsidies being extended in some form or fashion. We certainly have seen polling results that from kind of conservative pollsters that suggest that a very significant portion of voters support the extension of enhanced subsidies.

And we think it’s good policy, right? We think there is a lot of working class people in this country who deserve the right to have access to affordable healthcare and would lose that right if the subsidies weren’t extended. So good reasons for optimism that something might happen there. And for us, because we didn’t build that into our base assumptions, we think that would be generally upside to the financial performance should they be extended. Exactly what’s going to happen, I think it is volley to try to hypothesize about what will happen, right?

What we think is likely is that you would see enhanced subsidies attached to the continuing resolution around the budget. That’s the most likely place where that would happen. A surprise to none of us in this room, historically, the conversations about the budget have not resulted in agreement initially in that sense to get delayed and delayed and delayed. So I would not be surprised if even if it did get passed that it wouldn’t happen until later in this year, potentially during open enrollment. It would if the government goes to the extent of passing some level of enhanced subsidies, it would be surprising to me that they then don’t do something to allow the people who benefit from those subsidies to get access.

So we don’t know exactly how that would work. We are not real we are obviously having conversations with both federal and state regulators on those topics. We are having conversations about what might happen with pricing. And I think that it remains to be seen, but we we’re cautiously optimistic that something good will happen there in terms of an extension of subsidies. And

Steve Baxter, Healthcare Services Analyst, Wells Fargo: if something were to get done, but it was done later, granted, yes, I guess there could be a potential extension of open enrollment or special enrollment period that gets added or something like that. I guess, how is there any way to think about how disruptive it would be to have it done late versus having it done ahead of time?

Scott Blackley, CFO, Oscar: I think there’s two things to consider. Number one is that this really is a market dominated by brokers. They are the primary source of member acquisition, and they have a playbook of how they contact members. And they will it’s to their financial benefit to get these people back So into the I do think that, that would be one reason for optimism that people who if enhanced subsidies were passed, group of in place brokers would be very aggressive at making sure that people who may have left the market because they weren’t getting a subsidy come back into the market. I also think that it’s again, I said this a minute ago, but to the extent that our government extends those enhanced subsidies, think that the regulatory agencies will go to great lengths to ensure that people can take advantage

I don’t think there is a good political story that says we passed enhanced subsidies, but we actually didn’t do anything to facilitate the people who would benefit from that being able to actually get health care insurance. So again, we’re cautiously optimistic that something logical would work out. Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Maybe just to spend a couple of minutes on a few adjacent topics. I guess capital has been a big area of focus. Can see you’re pairing cash and we understand you have a lot of excess capital at the subs. At the same time, it’s a business that has like significant second half seasonality. I guess how do we think about your comfort level with where capital levels are and where you think maybe you might end the year from a capital perspective?

Yes.

Scott Blackley, CFO, Oscar: Well, I think you can do a reasonable estimate of where year end parent cash plus excess capital will end up. We’ve given you full year guidance on where we think adjusted EBITDA will be. You can do your own math on what does that mean. It’s a reasonable proxy of you take our back half losses back from that current levels of parent cash and excess capital to subs. In general, I think that we had a significant amount of excess capital and parent cash going into this reset.

We feel like we’ve got adequate resources in the company to continue to fund our company in almost all scenarios. And then on top of that, we have very little leverage in our balance sheet and believe that we would have access to additional leverage should we need to. And you can never have too much liquidity, would say that, but feel really good about the current position of our company. Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then just considerations around even if the consolidated metrics still look like they’re going to be pretty solid, getting capital in and out of different subsidiaries, parent cash needs, like how do we think about sort of those dynamics, any kind of complicating factors there? Yes.

Scott Blackley, CFO, Oscar: It’s more challenging when you’re market reset moment to move capital between legal I think that’s just a fact. And so our the way our business is structured, we have a host of legal entities. Some of them are state specific. Many of them have multiple states in them. That’s where the excess capital sits.

We think that in many of the markets that we expect to pick up market share, we’ve got excess capital in those businesses. So it won’t be a drag on parent cash. Some of the states, smaller states in particular, don’t have excess capital. If we see growth there, that may require some funding from the parent. But in general, we are not counting on moving capital from one legal entity to another legal entity in order to keep our liquidity right.

We kind of think about that being stuck in the short term at these legal entities. And again, I think that overall, feel confident about that we’ve got the right level of capital for the vast majority of the scenarios that we see potentially playing out.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then maybe spend a minute on, I guess, cost of care initiatives. A couple of years back when Mark joined the company, really big opportunities on things like PBM, provider recontracting, waste, fraud and abuse. Some of that’s either been executed on or kind of pulled forward in response to things that you’ve seen this year. As you think about kind of like what the opportunity set is that’s still remaining in front of the company beyond 2025, like how should we think about that?

Scott Blackley, CFO, Oscar: When Mark arrived and talked about watermelons on the ground, think that we did see a lot of opportunities. Not that long ago, Mark sent me a text of a picture of a bunch of watermelons in a big basin, and his comment was they’re still there. So I think we’ve made a huge amount of progress, but we still see loads of opportunities both on the side of what we can do on medical costs and as well on our administrative expenses. We really are on the front end of what’s possible with AI. We just launched a super agent that we think is really going to be differentiated than what others in the market.

This thing goes in and pulls information from all of our systems. And so if you’re a member, you can do chat with that bot. It will give you information from all of our systems. It also you can call in and speak to it here in the near future. So we just continue to see opportunities that in addition to just the basic blocking and tackling that I always think we Just can do from a technology perspective, I think we are really well positioned to be able to continue to take costs out from the admin side and to improve the overall dynamics of how our network contracts work, how fraud, waste and abuse works, all of those things can benefit from technology.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: And then just probably the last question would be on IPRA. On one hand, you guys continue to see a lot of promise in the business you’re investing. I think you bought some assets this most recent quarter to help drive the opportunity for that business. At the same time, there are these headwinds where the overall pricing in the exchange business could be going up substantially and part of the advantage in some cases has been the difference between the small group risk pool and individual risk pool. I guess how do you think about sort of those counterbalances in ICHRA and how to think about the next couple of years for that

Scott Blackley, CFO, Oscar: business? Yes. Well, we continue to be incredibly excited about the opportunities in ICHRA. We just did our launch with Hy Vee partnership that we did in the Midwest. They are a large grocer.

They also have a number of healthcare clinics. And we partnered with them to build ICRA plans for their communities. And so we think that’s a really great example of a high profile local institution who wants to bring more of their community into ICRA, obviously, using some of their clinics, but we see that as a terrific example of the enthusiasm for the product. Some of the acquisitions that we did of these assets are just kind of foundational assets that we think collectively give us more abilities to design, deliver, create a curated experience for potential ICRA members to choose the right plans, make that easy, to bring in potentially supplemental types of offerings, all of those things we can now do with those assets we acquired. So still feel like it’s early innings The for price moves this year, we think that’s short term noise as opposed to impacting kind of the long term trajectory of that market.

I would just say, and you can put this one in a time capsule, like this market is going to be the fastest sector in the individual market. It’s just a question of There is no reason to believe that the fundamentals of why you would do this won’t work in healthcare. Every commercial I see for auto insurance, life insurances choose the product that works for you. Why would we do something different in healthcare? So, it’s we continue to see traction, great conversations with companies and feel good about the long term prospects, although in the near term, our aspirations are or I should say, what we have built into our long term projections is pretty modest.

Okay.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Great. Well, that’s a perfect place to stop. Thanks for Great.

Scott Blackley, CFO, Oscar: Thanks, Steve.

Steve Baxter, Healthcare Services Analyst, Wells Fargo: Yes, appreciate it.

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