Oscar Health: A Modest Proposal

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They say healthcare is a growth industry. Which is true, of course. People keep, well, needing it. And then, eventually, not needing it anymore. So it goes. Oscar Health, this little insurance company, is trying to make some sense of it all with computers. Not to cure anyone, mind you, just to sort the paperwork. A noble effort, in its way.

Oscar (OSCR 3.88%) is betting on the idea that health insurance can be… less awful. They’re using those artificial intelligence doodads – chatbots, mostly – to keep things moving. It’s like replacing a tired bureaucrat with a slightly less tired algorithm. The theory is, it saves money. And maybe a little bit of human dignity.

They’re gaining traction, these folks. Two million members now, up from a paltry two hundred thousand a few years back. That’s a lot of co-pays. A lot of hope, too. And a lot of data, which is what the computers really want.

Building a Better Box

Unlike the other insurance companies – the ones that seem designed to actively discourage you from getting better – Oscar offers telehealth. A doctor on a screen. It’s not quite as good as a real doctor, but then again, neither is most of what passes for healthcare these days. It’s a feature, they say. It’s more like a concession. A small one. But a concession nonetheless.

They’ve built a platform. A technology-focused platform. It sounds important. It probably isn’t. It’s just a box, really. A digital box filled with forms and deductibles. But it’s a slightly shinier box than the others. And in the grand scheme of things, a shiny box is sometimes all you can ask for.

Oscar is targeting those of us who have to buy our own insurance. The self-employed. The freelancers. The ones who fell through the cracks. It’s a free market, they say. As if any of us are truly free when we’re staring down a six-figure medical bill. Still, they’re trying. And that’s something.

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A Little Turbulence

The stock is down. More than half its value since it went public. Which is predictable, really. The market doesn’t like surprises. And healthcare is full of them. Rising costs, expiring subsidies, the usual mess. It’s enough to make you want to lie down.

Healthcare costs went up. Surprise, surprise. Oscar raised its prices. Everyone did. It’s a simple equation. More demand, less supply, higher prices. It’s not capitalism. It’s just… life. And then there are those subsidies. Those little government handouts that keep the whole thing from collapsing. They’re expiring. Which means some people will lose coverage. It’s a vicious cycle. So it goes.

They say it’s a reset. A one-time adjustment. Maybe it is. Or maybe it’s just the beginning. The thing is, Oscar expects to generate twelve billion dollars in revenue this year. With a market cap of under four billion. That’s a discrepancy. A potential opportunity. A small flicker of hope in a very dark room.

They aren’t profitable yet. But they might be. If they can raise prices and keep enough customers. It’s a gamble, of course. All investments are. But sometimes, the best you can do is pick a slightly less terrible option and hope for the best. And maybe, just maybe, collect a little dividend along the way. It won’t buy you immortality, but it might buy you a decent cup of coffee. And in the end, what else really matters?

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2026-02-02 00:32