John W. Young's questions to Oscar Health Inc (OSCR) leadership • Q1 2025
Question
John W. Young from UBS asked about differing utilization patterns between new and returning members, the drivers of inpatient utilization, the reasons for favorable pharmacy trends, and the strategic opportunity presented by a competitor exiting the ACA exchanges.
Answer
CFO Scott Blackley noted that overall utilization was higher than expected, continuing a trend of elevated inpatient use and favorable pharmacy costs, but it was too early to draw firm conclusions. He stated that any headwinds should be offset by risk adjustment and internal cost-saving initiatives. CEO Mark Bertolini added that a competitor's exit is an opportunity for Oscar to gain members, attributing the exit to the competitor's specific pricing issues rather than a systemic market problem.