OSCR Oscar Health Inc

• For the quarter ended September 30, 2024:
  • Total Revenue of $2.4 billion, a 68% increase year-over-year
  • Medical Loss Ratio of 84.6%, an 80 bps increase year-over-year
  • SG&A Expense Ratio of 19.0%, a 360 bps improvement year-over-year
  • Net loss attributable to Oscar of $54.6 million, or $(0.22)  of earnings per share, a $10.8 million improvement year-over-year
  • Adjusted EBITDA loss of $11.6 million, an $8.7 million improvement year-over-year

Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR), a leading healthcare technology company, today announced its financial results for the third quarter ended September 30, 2024.

“Oscar reported positive third quarter results with strong revenue growth and improved financial performance," said Mark Bertolini, CEO of Oscar Health. “Our technology continues to enhance our growth and positions us to efficiently scale the business. We expect to deliver positive Adjusted EBITDA and net income profitability this year, setting a solid foundation to achieve our long-term targets.”

Total Revenue of $2.4 billion in the quarter increased 68% year-over-year, driven primarily by higher membership and rate increases.

The Medical Loss Ratio increased 80 bps year-over-year to 84.6%, due to modestly higher medical costs, primarily driven by higher Special Enrollment Period membership resulting in higher risk adjustment transfers as well as higher COVID-related costs, partially offset by favorable prior period development. The SG&A Expense Ratio improved 360 bps year-over-year to 19.0%, driven by improved fixed cost leverage and variable cost efficiencies.

Adjusted EBITDA loss of $11.6 million improved by $8.7 million year-over-year, and Net loss attributable to Oscar of $54.6 million also improved by $10.8 million year-over-year.

Oscar is updating its full year 2024 outlook to reflect year-to-date performance. The Company projects Revenue to be in the $9.2 billion to $9.3 billion range, $200 million above the prior range of $9.0 billion to $9.1 billion, and a lower SG&A Expense Ratio in the range of 19.4% to 19.6%. Additionally, the Company now projects Medical Loss Ratio to be towards the high-end of the prior range of 80.5% to 81.5%, and Adjusted EBITDA to be towards the high-end of the prior range of $160 million to $210 million. The Company also expects to achieve net income profitability this year.

Key Metrics and Non-GAAP Financial Metrics

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except percentages)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Total revenue

$

2,423,482

 

 

$

1,439,991

 

 

$

6,785,128

 

 

$

4,431,211

 

Medical Loss Ratio (MLR)

 

84.6

%

 

 

83.8

%

 

 

79.5

%

 

 

80.0

%

SG&A Expense Ratio

 

19.0

%

 

 

22.6

%

 

 

19.0

%

 

 

24.0

%

Adjusted EBITDA(1)

$

(11,563

)

 

$

(20,285

)

 

$

311,877

 

 

$

66,355

(1)

Adjusted EBITDA is a non-GAAP measure. See “Key Operating and Non-GAAP Financial Metrics - Adjusted EBITDA” in this release for a reconciliation to net loss, the most directly comparable GAAP measure, and for information regarding Oscar’s use of Adjusted EBITDA.

 

 

 

 

As of September 30,

Membership by Offering

2024

 

2023

Individual and Small Group

1,602,993

 

912,761

Medicare Advantage

—

 

1,840

Cigna+Oscar (1)

51,291

 

68,559

Total Members (2)

1,654,284

 

983,160

(1)

Represents total membership for Oscar’s co-branded partnership with Cigna.

(2)

A member covered under more than one of our health plans counts as a single member for the purposes of this metric.

Quarterly Conference Call Details Oscar will host a conference call to discuss the financial results today, November 7, 2024, at 8:00 a.m. (ET). A live audio webcast will be available via the Investor Relations page of Oscar’s website at ir.hioscar.com. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Non-GAAP Financial Information This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. For more information regarding Adjusted EBITDA, please see “Key Operating and Non-GAAP Financial Metrics” below.

Oscar has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this press release because Oscar is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, stock-based compensation expense. These items, which could materially affect the computation of forecasted GAAP net income (loss), are inherently uncertain and depend on various factors, some of which are outside of Oscar’s control. As such, any associated estimate and its impact on GAAP net income (loss) could vary materially.

Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including Total revenue, Medical Loss Ratio, SG&A Expense Ratio and Adjusted EBITDA and other financial performance metrics, and the related underlying assumptions, our profitability goals, our business and financial prospects, including potential future growth, and our management’s plans and objectives for future operations, expectations and business strategy. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict and generally beyond our control.

Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our ability to execute our strategy and manage our growth effectively; our ability to retain and expand our member base; heightened competition in the markets in which we participate; our ability to accurately estimate our incurred medical expenses or effectively manage our medical costs or related administrative costs; our ability to achieve or maintain profitability in the future; changes in federal or state laws or regulations, including changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended (collectively, the “ACA”), and any regulations enacted thereunder; our ability to comply with ongoing regulatory requirements, including capital reserve and surplus requirements and applicable performance standards; changes or developments in the health insurance markets in the United States, including passage and implementation of a law to create a single-payer or government-run health insurance program; our, or any of our vendors’, ability to comply with laws, regulations, and standards related to the handling of information about individuals or applicable consumer protection laws; our ability to arrange for the delivery of quality care and maintain good relations with the physicians, hospitals, and other providers within and outside our provider networks; unanticipated results of, or changes to, risk adjustment programs; our ability to utilize quota share reinsurance to meet our capital and surplus requirements and protect against downside risk on medical claims; unfavorable or otherwise costly outcomes of lawsuits, audits, investigations, and claims that arise from the extensive laws and regulations to which we are subject; incurrence of data security breaches of our and our partners’ information and technology systems; our ability to attract and retain qualified personnel; our ability to detect and prevent material weaknesses or significant control deficiencies in our internal controls over financial reporting or other failure to maintain an effective system of internal controls; adverse publicity or other adverse consequences related to our dual class structure or “controlled company” status; and the other factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”), and our other filings with the SEC, including our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, to be filed with the SEC.

You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Any forward-looking statement speaks only as of the date as of which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise.

About Oscar Health Oscar Health, Inc. (“Oscar”) is a leading healthcare technology company built around a full stack technology platform and a relentless focus on serving our members. We have been challenging the status quo in the healthcare system since our founding in 2012, and are dedicated to making a healthier life accessible and affordable for all. Oscar offers Individual & Family plans and health technology solutions that power the healthcare industry through +Oscar. Our technology drives superior experiences, deep engagement, and high-value clinical care, earning us the trust of approximately 1.65 million members, as of September 30, 2024.

Oscar Health, Inc. Condensed Consolidated Statements of Operations (unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except per share amounts)

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Premium

$

2,368,257

 

 

$

1,392,082

 

 

$

6,626,055

 

$

4,295,674

 

Investment income

 

50,326

 

 

 

42,368

 

 

 

143,309

 

 

119,908

 

Services and other

 

4,899

 

 

 

5,541

 

 

 

15,764

 

 

15,629

 

Total revenue

 

2,423,482

 

 

 

1,439,991

 

 

 

6,785,128

 

 

4,431,211

 

Operating Expenses

 

 

 

 

 

 

 

Medical

 

2,003,979

 

 

 

1,163,194

 

 

 

5,267,475

 

 

3,436,785

 

Selling, general, and administrative

 

460,377

 

 

 

325,850

 

 

 

1,289,745

 

 

1,061,612

 

Depreciation and amortization

 

7,500

 

 

 

9,191

 

 

 

22,912

 

 

22,952

 

Total operating expenses

 

2,471,856

 

 

 

1,498,235

 

 

 

6,580,132

 

 

4,521,349

 

Earnings (loss) from operations

 

(48,374

)

 

 

(58,244

)

 

 

204,996

 

 

(90,138

)

Interest expense

 

5,815

 

 

 

6,130

 

 

 

17,708

 

 

18,386

 

Other expenses (income)

 

(1,877

)

 

 

414

 

 

 

173

 

 

8,132

 

Earnings (loss) before income taxes

 

(52,312

)

 

 

(64,788

)

 

 

187,115

 

 

(116,656

)

Income tax expense

 

2,076

 

 

 

915

 

 

 

7,709

 

 

4,100

 

Net income (loss)

 

(54,388

)

 

 

(65,703

)

 

 

179,406

 

 

(120,756

)

Less: Net income (loss) attributable to noncontrolling interests

 

208

 

 

 

(305

)

 

 

427

 

 

(58

)

Net income (loss) attributable to Oscar Health, Inc.

$

(54,596

)

 

$

(65,398

)

 

$

178,979

 

$

(120,698

)

 

 

 

 

 

 

 

 

Earnings (Loss) per Share

 

 

 

 

 

 

 

Basic

$

(0.22

)

 

$

(0.29

)

 

$

0.75

 

$

(0.55

)

Diluted

$

(0.22

)

 

$

(0.29

)

 

$

0.65

 

$

(0.55

)

Weighted Average Common Shares Outstanding

 

 

 

 

 

 

 

Basic

 

243,106

 

 

 

223,099

 

 

 

237,759

 

 

219,827

 

Diluted

 

243,106

 

 

 

223,099

 

 

 

301,459

 

 

219,827

Oscar Health, Inc. Condensed Consolidated Balance Sheets (unaudited)

 

(in thousands)

September 30, 2024

 

December 31, 2023

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

1,206,145

 

 

$

1,870,315

 

Short-term investments

 

503,784

 

 

 

689,833

 

Premiums and accounts receivable (net of allowance for credit losses of $30,100 and $31,600)

 

300,635

 

 

 

201,269

 

Risk adjustment transfer receivable

 

63,512

 

 

 

51,925

 

Reinsurance recoverable

 

273,317

 

 

 

241,194

 

Other current assets

 

20,661

 

 

 

6,564

 

Total current assets

 

2,368,054

 

 

 

3,061,100

 

Property, equipment, and capitalized software, net

 

66,631

 

 

 

61,930

 

Long-term investments

 

1,933,892

 

 

 

365,309

 

Restricted deposits

 

30,069

 

 

 

29,870

 

Other assets

 

84,369

 

 

 

83,271

 

Total assets

$

4,483,015

 

 

$

3,601,480

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current Liabilities:

 

 

 

Benefits payable

$

1,356,726

 

 

$

965,986

 

Risk adjustment transfer payable

 

1,083,880

 

 

 

1,056,941

 

Premium deficiency reserve

 

1,444

 

 

 

5,776

 

Unearned premiums

 

66,129

 

 

 

65,918

 

Accounts payable and other liabilities

 

395,481

 

 

 

273,367

 

Reinsurance payable

 

51,117

 

 

 

61,024

 

Total current liabilities

 

2,954,777

 

 

 

2,429,012

 

Long-term debt

 

299,361

 

 

 

298,777

 

Other liabilities

 

63,537

 

 

 

67,574

 

Total liabilities

 

3,317,675

 

 

 

2,795,363

 

Commitments and contingencies

 

 

 

Stockholders' Equity

 

 

 

Class A common stock ($0.00001 par value; 825,000 thousand shares authorized, 211,702 thousand and 193,875 thousand shares outstanding as of September 30, 2024 and December 31, 2023, respectively)

 

2

 

 

 

2

 

Class B common stock ($0.00001 par value; 82,500 thousand shares authorized, 35,514 thousand shares outstanding as of September 30, 2024 and December 31, 2023, respectively)

 

—

 

 

 

—

 

Treasury stock (315 thousand shares as of September 30, 2024 and December 31, 2023)

 

(2,923

)

 

 

(2,923

)

Additional paid-in capital

 

3,837,369

 

 

 

3,682,294

 

Accumulated deficit

 

(2,697,736

)

 

 

(2,876,715

)

Accumulated other comprehensive income

 

26,051

 

 

 

1,309

 

Total Oscar Health, Inc. stockholders' equity

 

1,162,763

 

 

 

803,967

 

Noncontrolling interests

 

2,577

 

 

 

2,150

 

Total stockholders' equity

 

1,165,340

 

 

 

806,117

 

Total liabilities and stockholders' equity

$

4,483,015

 

$

3,601,480

 

Oscar Health, Inc. Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

Cash Flows from Operating Activities:

 

 

 

Net income (loss)

$

179,406

 

 

$

(120,756

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Deferred taxes

 

(68

)

 

 

95

 

Net realized loss on sale of financial instruments

 

2

 

 

 

70

 

Depreciation and amortization expense

 

22,912

 

 

 

22,952

 

Amortization of debt issuance costs

 

583

 

 

 

583

 

Stock-based compensation expense

 

83,969

 

 

 

133,541

 

Net accretion of investments

 

(18,956

)

 

 

(22,856

)

Change in provision for credit losses

 

(1,500

)

 

 

12,000

 

Changes in assets and liabilities:

 

 

 

(Increase) / decrease in:

 

 

 

Premiums and accounts receivable

 

(97,867

)

 

 

(2,622

)

Risk adjustment transfer receivable

 

(11,587

)

 

 

(4,265

)

Reinsurance recoverable

 

(32,123

)

 

 

615,084

 

Other assets

 

(15,127

)

 

 

3,854

 

Increase / (decrease) in:

 

 

 

Benefits payable

 

390,740

 

 

 

(27,278

)

Unearned premiums

 

211

 

 

 

(7,396

)

Premium deficiency reserve

 

(4,332

)

 

 

(4,035

)

Accounts payable and other liabilities

 

118,079

 

 

 

(41,366

)

Reinsurance payable

 

(9,907

)

 

 

(360,335

)

Risk adjustment transfer payable

 

26,938

 

 

 

(766,297

)

Net cash provided by (used in) operating activities

 

631,373

 

 

 

(569,027

)

Cash Flows from Investing Activities:

 

 

 

Purchase of investments

 

(2,023,049

)

 

 

(622,183

)

Sale of investments

 

21,188

 

 

 

26,656

 

Maturity of investments

 

663,011

 

 

 

1,019,612

 

Purchase of property, equipment and capitalized software

 

(21,078

)

 

 

(19,475

)

Change in restricted deposits

 

3,942

 

 

 

100

 

Net cash (used in) provided by investing activities

 

(1,355,986

)

 

 

404,710

 

Cash Flows from Financing Activities:

 

 

 

Proceeds from joint venture contribution

 

—

 

 

 

2,491

 

Proceeds from exercise of stock options

 

64,571

 

 

 

2,886

 

Net cash provided by financing activities

 

64,571

 

 

 

5,377

 

Decrease in cash, cash equivalents and restricted cash equivalents

 

(660,042

)

 

 

(158,940

)

Cash, cash equivalents, restricted cash and cash equivalents—beginning of period

 

1,891,971

 

 

 

1,580,497

 

Cash, cash equivalents, restricted cash and cash equivalents—end of period

 

1,231,929

 

 

 

1,421,557

 

Cash and cash equivalents

 

1,206,145

 

 

 

1,399,791

 

Restricted cash and cash equivalents included in restricted deposits

 

25,784

 

 

 

21,766

 

Total cash, cash equivalents and restricted cash and cash equivalents

$

1,231,929

 

 

$

1,421,557

 

Supplemental Disclosures:

 

 

 

Interest payments

$

22,480

 

 

$

22,893

 

Income tax payments

$

636

 

 

$

1,000

 

Key Operating and Non-GAAP Financial Metrics We regularly review the following key operating and Non-GAAP financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare financial projections, and make strategic decisions. We believe these operational and financial measures are useful in evaluating our performance, in addition to our financial results prepared in accordance with GAAP.

Members Members are defined as any individual covered by a health plan that we offer directly or through a co-branded arrangement. We view the number of members enrolled in our health plans as an important metric to help evaluate and estimate revenue and market share. Additionally, the more members we enroll, the more data we have, which allows us to improve the functionality of our platform.

Total Revenue Total revenue includes Premium revenue, Investment income, and Services and other revenue. We believe Total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.

Medical Loss Ratio Medical Loss Ratio is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. Medical expenses are the total expenses incurred by members in order to utilize health care services less any member cost sharing. These services include inpatient, outpatient, pharmacy, and physician costs. Medical claims also include fee-for-service claims, pharmacy benefits, capitation payments to providers, provider disputed claims, risk sharing arrangements with certain of our providers, and various other medical-related costs. The impact of the federal risk adjustment program is included in the denominator of our MLR. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for healthcare of our members to the net premium before ceded reinsurance. MLR in our existing products are subject to various federal and state minimum requirements.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except percentages)

2024

 

2023

 

2024

 

2023

Medical

$

2,003,979

 

 

$

1,163,194

 

 

$

5,267,475

 

 

$

3,436,785

 

Less: Ceded quota share reinsurance claims (1)

 

2,036

 

 

 

(4,870

)

 

 

(2,879

)

 

 

(1,221

)

Net claims before ceded quota share reinsurance (A)

$

2,001,942

 

 

$

1,168,064

 

 

$

5,270,353

 

 

$

3,438,006

 

 

 

 

 

 

 

 

 

Premium

$

2,368,257

 

 

$

1,392,082

 

 

$

6,626,055

 

 

$

4,295,674

 

Less: Ceded quota share reinsurance premiums (2)

 

2,971

 

 

 

(1,448

)

 

 

(1,865

)

 

 

(2,131

)

Net premiums before ceded quota share reinsurance (B)

$

2,365,286

 

 

$

1,393,530

 

 

$

6,627,920

 

 

$

4,297,805

 

Medical Loss Ratio (A divided by B)

 

84.6

%

 

 

83.8

%

 

 

79.5

%

 

 

80.0

%

(1)

Represents prior period development for claims ceded to reinsurers pursuant to quota share treaties accounted for under reinsurance accounting, which are in runoff.

(2)

Represents prior period development for premiums ceded to reinsurers pursuant to quota share treaties accounted for under reinsurance accounting, which are in runoff.

SG&A Expense Ratio The SG&A Expense Ratio reflects the Company’s selling, general and administrative ("SG&A") expenses, as a percentage of Total revenue. Selling, general and administrative expenses primarily include distribution expenses, wages, benefits, costs of software and hardware, the impact of quota share reinsurance, stock-based compensation, and other administrative costs. We believe the SG&A Expense Ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.

Adjusted EBITDA Adjusted EBITDA is defined as Net income (loss) for the Company and its consolidated subsidiaries before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for stock-based compensation and other items that are considered unusual or not representative of underlying trends of our business, where applicable for the period presented. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is a non-GAAP measure. Management believes that investors’ understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations.

We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate Adjusted EBITDA in the same manner.

By providing this non-GAAP financial measure, together with a reconciliation to the most comparable U.S. GAAP measure, Net income (loss), we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for Net income (loss) or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Net income (loss)

$

(54,388

)

 

$

(65,703

)

 

$

179,406

 

$

(120,756

)

Interest expense

 

5,815

 

 

 

6,130

 

 

 

17,708

 

 

18,386

 

Other expenses

 

(1,877

)

 

 

414

 

 

 

173

 

 

8,132

 

Income tax expense

 

2,076

 

 

 

915

 

 

 

7,709

 

 

4,100

 

Depreciation and amortization

 

7,500

 

 

 

9,191

 

 

 

22,912

 

 

22,952

 

Stock-based compensation(1)

 

29,311

 

 

 

28,768

 

 

 

83,969

 

 

133,541

 

Adjusted EBITDA

$

(11,563

)

 

$

(20,285

)

 

$

311,877

 

$

66,355

 

(1)

Represents non-cash expenses related to equity-based compensation programs, which vary from period to period depending on various factors including the timing, number, and the valuation of awards. The nine months ended September 30, 2023 includes a non-recurring charge of $46.3 million related to accelerated stock-based compensation expense recognized as a result of the cancellation of the Founders Awards previously granted to Mario Schlosser and Joshua Kushner.

Appendix

Reinsurance Impact

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Quota share ceded premiums

$

1,300

 

 

$

284

 

 

$

(3,120

)

 

$

7,107

 

Quota share ceded claims

 

(2,036

)

 

 

4,869

 

 

 

2,879

 

 

 

1,221

 

Ceding commission, net of deposit accounting impact (1)

 

(13,747

)

 

 

(7,169

)

 

 

(39,273

)

 

 

(23,431

)

Experience refund

 

1,671

 

 

 

(1,732

)

 

 

1,255

 

 

 

(9,238

)

Net quota share impact

$

(12,812

)

 

$

(3,748

)

 

$

(38,259

)

 

$

(24,341

)

(1)

Includes ceding commissions received from reinsurers, net of the impact of deposit accounting of $(13,658) and $(7,139) for the three months ended September 30, 2024 and 2023, respectively, and $(39,656) and $(22,455) for the nine months ended September 30, 2024 and 2023, respectively.

The Company records Premium revenue net of reinsurance. The following table reconciles total reinsurance premiums ceded and reinsurance premiums assumed, which are included as components of total Premium revenue in the Condensed Consolidated Statements of Operations:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Direct policy premiums

$

2,687,883

 

 

$

1,548,571

 

 

$

7,542,098

 

 

$

4,796,819

 

Assumed premiums

 

55,062

 

 

 

57,836

 

 

 

173,134

 

 

 

174,166

 

Risk adjustment transfers

 

(374,828

)

 

 

(211,422

)

 

 

(1,077,121

)

 

 

(665,200

)

Reinsurance premiums ceded

 

140

 

 

 

(2,903

)

 

 

(12,056

)

 

 

(10,111

)

Premium

$

2,368,257

 

 

$

1,392,082

 

 

$

6,626,055

 

 

$

4,295,674

 

The Company records Medical expenses net of reinsurance recoveries. The following table reconciles total Medical expenses to the amount presented in the Condensed Consolidated Statements of Operations:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Direct claims incurred

$

1,986,189

 

 

$

1,116,679

 

 

$

5,189,901

 

 

$

3,301,424

 

Ceded reinsurance claims

 

(41,171

)

 

 

(15,266

)

 

 

(90,823

)

 

 

(33,833

)

Assumed reinsurance claims

 

58,961

 

 

 

61,781

 

 

 

168,397

 

 

 

169,194

 

Medical expenses

$

2,003,979

 

 

$

1,163,194

 

 

$

5,267,475

 

 

$

3,436,785

 

The Company records Selling, general and administrative ("SG&A") expenses net of reinsurance ceding commissions and assumed SG&A expenses. The following table reconciles total Selling, general and administrative expenses to the amount presented in the Condensed Consolidated Statements of Operations:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Selling, general and administrative expenses, gross

$

459,522

 

$

325,820

 

$

1,289,362

 

$

1,060,636

Reinsurance ceding commissions

 

855

 

 

30

 

 

383

 

 

976

Selling, general and administrative expenses

$

460,377

 

$

325,850

 

$

1,289,745

 

$

1,061,612

The Company classifies Reinsurance recoverable within current assets on its Condensed Consolidated Balance Sheets. The composition of the Reinsurance recoverable balance is as follows:

(in thousands)

September 30, 2024

 

December 31, 2023

Reinsurance premium and claim recoverables

$

272,478

 

 

$

224,837

Reinsurance ceding commissions

 

6,915

 

 

 

7,054

Experience refunds on reinsurance agreements

 

(6,076

)

 

 

9,303

Reinsurance recoverable

$

273,317

 

 

$

241,194

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107962943/en/

Investor Contact: Chris Potochar VP of Investor Relations ir@hioscar.com

Media Contact: Kristen Prestano VP of Communications press@hioscar.com Source: Oscar Health, Inc.