The health insurance startup has about 7,000 customers in Dallas — a market the company entered this year — and about 26,000 customers in New Jersey.
“The individual market isn’t working as intended and there are weaknesses in the way it’s been set up,” Oscar CEO Mario Schlosser told Bloomberg. “We want to focus on the markets we understand well; we want to focus on the markets where we have our model in place.”
Oscar will continue to offer plans in New York City, Los Angeles and San Antonio. The company also plans to expand into the San Francisco area.
The insurer’s decision to retreat from certain ACA markets comes after reporting significant losses. In 2015, Oscar lost $115 million. The company lost $83 million in New York, California and Texas in the first half of 2016. Quarterly filings aren’t available for the company’s New Jersey market, according to the report.
More articles on payer issues:
Cain Brothers: 3 core thoughts on public health exchanges
BCBS of Rhode Island reports $52M operating loss in 2016 thus far
Fewer individual choices, rising cost lead small businesses back to group health plans
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