Insurance Startup Oscar Posts Obamacare Losses in Three States
- Company discloses red ink in filing for first half of year
- Insurer had millions in losses in New York, Texas, California
An examination in Los Angeles, California.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Oscar Insurance Corp., the startup backed by Silicon Valley investors, posted losses in New York, Texas and California in the first half of the year, the latest example of insurers both large and small losing money in new markets created by President Barack Obama’s health-care overhaul.
In New York, Oscar’s biggest market, the loss widened to $52.2 million from $15.5 million in the first half of 2015. The insurer also lost $12.9 million in California and $17.9 million in Texas, according to state filings, after starting to sell plans in Dallas, San Antonio and the Los Angeles area this year.