Oscar Insurance Corp., a startup health insurance company, announced Tuesday it would withdraw from two insurance markets where it has offered individual plans on the federal exchanges.
The insurer, which entered the insurance market three years ago and has gained attention for its use of technology, won’t offer plans in the Dallas-Forth Worth or New Jersey markets, CEO Mario Schlosser said in a release, pointing to financial issues that other insurers are also struggling with.
“As an insurer active in the individual market, however, we face the same challenging market dynamics as do other companies — some larger, some smaller,” Schlosser said.
Oscar’s announcement comes a week after Aetna became the third major insurer to announce it would withdraw from some exchanges in 2017, prompting questions about what steps may be necessary to stabilize the exchanges.
The company will enter the San Francisco market, and will continue to offer plans in the New York, San Antonio, Los Angeles and Orange County markets, he said. The company is also poised to begin providing small group insurance coverage in some markets next year.
In his written comments, Schlosser suggested the company looks forward to the individual market stabilizing, though he told Bloomberg “there are weaknesses in the way it’s been set up.”
“There is no question in our minds that the elements of the individual market—where competition fuels faster innovation, a stronger focus on affordability and quality, intelligent network designs, and the ability for individuals to take charge of their healthcare—will be what all of healthcare looks like in the years to come,” Schlosser wrote. “That is the long-term picture we work towards, as we remain prudent about where we focus in the short-term.”