Oscar Health (OSCR) Investor Day 2024 summary

Strategic Vision and Business Model

• Introduced a dynamic three-year strategic plan, updated annually to align with operational goals and market changes.

• Mission centers on making a healthier life accessible and affordable for all, leveraging healthcare and technology expertise.

• Four strategic objectives: achieve ~20% revenue CAGR and ~5% operating margin by 2027, enhance member experience, externalize technology, and expand the individual market with ICHRA.

• Management compensation is tied to three-year EBIT targets, reinforcing accountability.

• Committed to delivering innovative, culturally relevant plan designs and personalized experiences.

Market Positioning and Growth Strategy

• Shifting focus from ACA to the broader individual market, leveraging a stable risk pool and expanding through ICHRA products.

• Targeting entry into 150+ new MSAs by 2027 and building a leading ICHRA carrier business.

• Plans to expand ACA market access from 50% to 70% by 2027, with further room for growth.

• Growth pillars: disciplined footprint expansion, innovative products, and robust total cost of care management.

• Positioned as a leading player in the fastest-growing health insurance market, with significant runway for technology monetization and ICHRA disruption.

Financial Guidance and Targets

• Reaffirmed 2024 guidance: $8.3B–$8.4B revenue, 20.5%–21.0% SG&A ratio, 80.2%–81.2% MLR, and $125M–$175M Adjusted EBITDA.

• Long-term targets: at least 20% revenue CAGR and 5% operating margin by 2027, assuming enhanced subsidies expire.

• EPS expected to exceed $2.25 in 2027, with upside if subsidies are extended.

• Achieved ~40% three-year membership CAGR and significant margin improvements; targeting Adjusted EBITDA profitability in 2024.

• Capital allocation prioritizes organic growth, with strong excess capital and flexibility for optimization or potential share buybacks.