Even the startup trying to disrupt health insurance can't figure out Obamacare
(Barack Obama.Mark Wilson/Getty Images)
Oscar, the $2.8 billion health insurance startup, is pulling out of some Obamacare exchanges.
According to a release from the company on Tuesday, the firm will no longer offer individual market plans through the Affordable Care Act in Dallas, Texas, and New Jersey.
"But there are uncertainties in those two markets that will make it challenging for us to operate effectively and continue to deliver access to quality healthcare to all of our members across the country," the release said.
"We hope to return to these markets as we carry on with our mission to change healthcare in the US."
The company has set out to revolutionize the way that people get their health insurance by simplifying the offerings and making them easily accessible in its online platform. Despite the attempts at disruption, it appears to be facing the same challenges that largest insurance providers — such as United Healthcare, Aetna, and Humana — are facing in the ACA exchanges. Each of those insurers has rolled back a significant chunk of its Obamacare business this year.
In an interview with Bloomberg's Zachary Tracer, Oscar CEO Mario Schlosser said that problems with the exchanges are forcing the firm to focus only on markets they are comfortable with.
"The individual market isn't working as intended, and there are weaknesses in the way it's been set up," Schlosser told Tracer. "We want to focus on the markets we understand well. We want to focus on the markets where we have our own model in place."
Oscar currently covers 7,000 people in Dallas and 26,000 in New Jersey.
In the release, Schlosser said that the company will assist those it currently covers in the two markets to find new plans and expressed concerns over prices in the exchanges.
"We do not reach these decisions lightly, and will do our utmost to help our members in the affected regions find coverage for 2017," the release said.
"We also look forward to seeing the individual market stabilize, allowing us to serve more people across the US in a meaningful way, while maintaining affordable pricing for consumers."
The company said it still plans to expand its offerings to the San Francisco market in 2017. The firm also will continue to offer coverage in New York, San Antonio, Los Angeles, and Orange County, California.
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