We got our hands on filings that show $3.2 billion health-insurance startup Oscar Health is plotting an expansion into another city

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• Oscar Health just posted its financials for the first quarter of 2019.
• The company said Wednesday that it had taken in $354 million in gross premium revenue. 
• According to filings reviewed by Business Insider, Oscar has filed as an insurer in three new states: Illinois, Georgia, and Pennsylvania. In Pennsylvania, plans to operate plans in Philadelphia and Delaware counties.  
• Visit Business Insider’s homepage for more stories.

Oscar Health is headed for another metro area. 

The startup health insurer, which currently sells insurance on the individual exchanges set up by the Affordable Care Act and to small businesses, has filed to be an insurer in another new states for 2020.

Documents reveal the company plans to operate in Philadelphia and nearby Delaware county in Pennsylvania next year. Business Insider previously reported that the company planned to enter Illinois and Georgia, too. 

A spokeswoman for Oscar said in a statement that the company is laying the groundwork to operate in new markets, but that the company won’t necessarily sell health plans in all three states in 2020.

This year, Oscar offers health-insurance plans in nine states: Arizona, California, Florida, Michigan, New Jersey, New York, Ohio, Texas, and Tennessee.

Read more: $3.2 billion startup Oscar Health is plotting its expansion into new states as it moves into a competitive insurance plan market

"Oscar is committed to expanding our footprint so we can offer our tech-driven, consumer-facing health insurance to more people across the country," the spokeswoman said. "There are regulatory requirements with which we need to comply and licenses we need to obtain in order to operate in new markets. These new entities are merely preparatory and, pending approval, we will announce our 2020 footprint and the products we will offer in each market later this year."

Oscar has said that it’s planning to offer a new type of health insurance as well. In 2020, Oscar will start offering private health-insurance plans to seniors, which are known as Medicare Advantage plans. The company hasn’t yet said where it will sell those plans.

Read more: We got a look at $3.2 billion startup Oscar Health’s latest enrollment numbers, and they show why the company is pursuing a new strategy for growth

Oscar in August 2018 raised $375 million from Google’s parent company Alphabet, and said it would use the funds to bring its tech-backed health insurance plans to more people, including in Medicare Advantage. In total, the company has now raised more than $1 billion.

On Wednesday, Oscar provided reporters with a summary of its financial results for the first quarter of 2019. The company said it took in $354 million in gross premium revenue, and that it generated a gross underwriting profit of $82 million. The company said it spent about 70% of its members premium dollars on medical care. 

The gross profit figure doesn’t include spending on investment the company is making in hiring new people or building out its technology, nor its marketing costs to get the word out about the plans. The gross revenue figure adds back in funds that Oscar sends to insurance giant Axa as part of a reinsurance deal.

A portion of the premiums that Oscar collects are sent to Axa, and in return Axa agrees to share a portion of Oscar’s profits or losses. 

Business Insider reviewed Oscar’s financial filings to gain a more complete view of the company’s results.

Oscar took in about $198 million in premiums in the first quarter of 2019, according the company’s filings. The figure excludes funds sent to Axa. The filings also leave out some members in New Jersey. The company posted a net profit of $24 million, according to the filings.

• Read more:
• Venture-backed health-insurance startup Bright Health is plotting a major expansion into 5 new states
• We just got our first look at $1.8 billion startup Devoted Health’s financials since the health insurer began signing up customers
• UBiome’s independent directors are ditching the healthcare startup following an FBI raid, and now there’s only 1 left
• Health-insurance startups like Oscar Health and Clover Health have raked in $1.3 billion in the past year. We took a look at their financials, which show how hard it is to get a foothold in the industry.

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See Also:

• We took a look at the latest financial results for health insurer Clover Health, which raised $500 million in January and laid off 25% of its staff in March
• Venture-backed health-insurance startup Bright Health is plotting a major expansion into 5 new states
• We just got our first look at $1.8 billion startup Devoted Health’s financials since the health insurer began signing up customers

Source: Business Insider – lramsey@businessinsider.com (Lydia Ramsey)