In addition to the decisions of UnitedHealthcare and Aetna to pull out of the ObamaCare markets, Oscar Health—a lesser-known insurer—announced on Tuesday that it too would be pulling out of the New Jersey and Dallas-Texas markets.
Today, we’re announcing that Oscar has decided to withdraw our services from the individual markets in Dallas–Fort Worth and New Jersey beginning January 1, 2017. We will continue to serve the New York, San Antonio, Los Angeles and Orange County markets, and we will begin serving the San Francisco market on January 1, 2017.
According to NJBiz.com, “The 4-year-old startup grew its market share in the individual health coverage program in New Jersey for 2016, but posted losses of about $105 million in the region for the previous year.”
Oscar’s departure means that there will only be three insurers—AmeriHealth, Horizon Blue Cross Blue Shield of New Jersey and Health Republic—competing in New Jersey’s ObamaCare marketplace.
In Dallas, according to Bloomberg, “Oscar faced an unpredictable insurance market, with several large carriers pulling out and the state’s Blue Cross and Blue Shield insurer asking for big rate increases, along with climbing medical costs.”
Although Oscar is quitting the Dallas and New Jersey markets, the company is opening a market in San Francisco.
“Some of this is really looking at our opportunities and trying to pursue more aggressively the small-group market,” said Joel Klein, the company’s chief policy and strategy officer told Bloomberg. “It’s a little bit of a rebalance given the underlying market forces.”