Oscar Health, Inc.

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to Oscar House 2023 third quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. I will now turn the conference over to Chris Pottershire, Vice President of Treasury and Investor Relations.

Good morning, everyone. Thank you for joining us for our third quarter 2023 earnings call, where we'll discuss our strong year-to-date results, our updated financial outlook for 2023, and the path to total company adjusted EBITDA profitability in 2024. Mark Bertolini, Oscar's Chief Executive Officer, and Scott Blackley, Oscar's Chief Financial Officer, will host this morning's call. This call can also be accessed through our investor relations website at ir.highoscar.com. Full details of our results and additional management commentary are available in our earnings release, which can be found on our investor relations website at ir.highoscar.com. Any remarks that Oscar makes about the future constitute forward-looking statements within the meaning of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in our quarterly report on Form 10-Q for the quarterly period ended June 30, 2023, filed with the SEC, and other filings with the SEC, including our quarterly report on Form 10-Q for the quarterly period ended September 30th, 2023 to be filed with the SEC. Such forward-looking statements are based on current expectations as of today. OSCAR anticipates that subsequent events and developments may cause estimates to change. While the company may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. The call will also refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable gap measures can be found in the third quarter 2023 press release, which is available on the company's investor relations website at ir.highoscar.com. With that, I would like to turn the call over to our CEO, Mark Bertolini.

Thank you, Chris. Good morning, everyone. Thanks for joining our call. Today, I'll review strategic drivers of Oscar's momentum and and preview our plan to deliver sustainable growth and profitability. We had another strong quarter with solid core business performance, increasing our optimism for 2024 total company adjusted EBITDA profitability. We had a strong membership retention across our book, and our leading NPS increased to a record high of 60. Our insurance business is performing well, with all core ratios improving meaningfully year-over-year in 3Q and year-to-day. In the quarter, our medical loss ratio improved 610 basis points year-over-year to 83.8%, driven by our disciplined pricing strategy and execution under total cost of care initiatives. Insurance company adjusted EBITDA profitability remains solidly on track for this year. We also maintain total company profitability through the first nine months of 2023 with adjusted EBITDA of $66 million. Given our year-to-date outperformance, we are raising our full year 2023 adjusted EBITDA outlook. Scott will walk us through a more detailed view of our financial metrics later in the call. Now I will turn to our business highlights. We are one week into open enrollment, marking Oscar Health Insurance's 11th year as a prominent player in the ACA market. Starting in 2024, we will bring new technology enabled individual and family plans to 165 new counties in 11 states across our broader 18 state footprint. Based on our competitive positioning, we expect to achieve direct premium growth at or above market in 2024. Our growth strategy includes several expansion drivers focused on accessibility, affordability, and member experience. First, we are expanding in states Oscar knows well, including Iowa, Ohio, and Georgia. The expansion appropriately balances risk and includes rural counties that build off of our existing provider rate structures and distribution channels. Second, we are enhancing our leading Hola Oscar program for our growing Spanish-speaking member base. The program delivers culturally authentic experiences, including providers who speak the language. Our Spanish-speaking members have an even higher NPS than our overall member average and represent a growing segment of the ACA market. Third, we are introducing more personalized plan designs. Our newest plan, Breathe Easy, aligns benefits with the needs of members suffering from COPD and asthma. Breathe Easy builds on the success of our diabetes care plan, which has generated notable results, including 9% better medication adherence, 17% increases in eye exams, and 12% higher rates of kidney disease screenings. The processes we implemented in 2023 give us confidence in our execution. In 2024, our strategy balances growth with sustainable margin expansion. The core building blocks include our one, discipline pricing strategy, two, administrative expense initiatives, and three, total cost of care efforts. We plan to reduce medical expenses through substantial PBM contract savings, fraud, waste, and abuse initiatives, and network recontracting. All of these factors lay an achievable path to total company adjusted EBITDA profitability in 2024. Now turning to Plus Oscar. This morning we announced a new agreement with Stanford Health Plan, a provider-sponsored plan supporting one of the largest U.S. health systems. The multi-year agreement leverages our campaign builder technology to drive member engagement and interconnectivity through their operations. Focused areas include improving member growth and retention, appropriate PCP utilization, clinical program engagement, and adherence. Our Stanford Health Plan partnership demonstrates the growth potential of Plus Oscar. After just one year of offering Campaign Builder to third parties, we have grown to serve 500,000 lives. The addition of Stanford Health builds on Campaign Builder's success with Plus Oscar clients. A recent example includes a large physician group in MSO where we initiated an annual wellness visit campaign, which successfully engaged approximately 86% of patients. That outreach drove a 10% increase in PCP utilization within 30 days of campaign execution. In addition, we continue to build new campaign builder features that integrate open AI for Plus Oscar clients and Oscar health insurance. These enhancements synthesize data from multiple sources to deliver high-frequency, personalized interventions and intelligently monitor for signals that route better care. These successes demonstrate the impact PlusOscar is making to improve access and quality for Oscar Health Insurance and the potential to power the broader healthcare system. Looking ahead, our leadership team continues to evolve our strategy. Near term, we remain committed to our profitability targets. Longer term, we are focused on continued margin expansion. We have a strong operating plan that lays the groundwork for 2024 and sets us up for success in 2025. Our focus includes, one, running a great company, two, continually enhancing the member experience, three, accelerating PlusOscar revenue by commercializing our technology platform, and four, driving further momentum in Oscar Health Insurance by diversifying beyond the ACA. Over the next several months, we will continue to map out our strategy and look forward to sharing it with the market at an investor day in 2024. With that, I will turn it over to Scott.