Olivia

Olivia asked about Oscar Health's efforts to gain more insight into the broader market for risk adjustment, given its inherent difficulty and reliance on other plans. She also inquired about potential reforms to make risk adjustment more transparent and less volatile. Additionally, she asked about catalyzing adoption rates for ICHRA and condition/disease-specific plans, and the competitive advantages these innovations offer Oscar longer term.

Answer

R. Scott Blackley, Oscar Health Chief Financial Officer, acknowledged that estimating risk adjustment is challenging due to market visibility, but expressed optimism about working with Wakely to obtain more timely market information, which should increase visibility over time. Mark Bertolini, Oscar Health Chief Executive Officer, discussed ICHRA, noting Oscar is building out employer conversion tools for defined contribution, seeing a larger, higher-margin opportunity beyond just membership. For lifestyle products, he emphasized separating investment from financing decisions, creating flexible funding mechanisms, and a marketplace for choice, aiming for lifetime membership value and a market less impacted by morbidity changes.

Olivia inquired about Oscar Health's efforts to gain more insight into the broader market for risk adjustment, given its inherent volatility and reliance on other plans. She also asked about potential reforms to make risk adjustment more transparent and less volatile, and about the catalysts for adoption and competitive advantages of Oscar's ICHRA and disease-specific plans.

Answer

R. Scott Blackley, Oscar Health Chief Financial Officer, expressed optimism about working with Wakely to get more timely market information to improve risk adjustment forecasting. Mark Bertolini, Oscar Health Chief Executive Officer, explained that ICHRA's opportunity extends beyond membership to converting employers to defined contribution, with Oscar building out the front end for this. He believes ICHRA is stickier due to consistent funding mechanisms. For lifestyle products, he envisions a future where investment and financing decisions are separate, allowing for lifetime value of membership and a market less impacted by morbidity changes.