Oscar Health, Inc. Investor Day 2026

Morning. Welcome to Oscar Health 2026 Investor Day. It is great to see so many of you. I know it's conference season, so thank you for joining us this morning. We appreciate you taking the time. I'd also like to welcome everyone that's joining from the webcast this morning as well. Thank you for joining. For your reference, all the materials that we will present today will be available a little bit later this morning, and you can find that on our investor relations website at ir.oscarhealth.com. As a reminder, any remarks Oscar makes about the future constitute forward-looking statements within the meaning of the 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 most recent annual report on Form 10-K and other filings with the SEC. These statements are based on our expectations as of today, and we specifically disclaim any obligation to update them. Okay, before we begin, I just want to hit on and briefly walk through today's agenda. First, Mark Bertolini, Oscar's Chief Executive Officer, will share our vision and strategy, including how we are building the premier consumer healthcare company. Following Mark, Scott Blackley, our Chief Financial Officer, will discuss our financial outlook, including our updated 2026 guidance and longer-term financial targets.

We'll then have a quick break, and when we come back into the room, Janet Liang, President of Oscar Insurance, will discuss how we are strengthening our leadership in the individual market. After Janet, Mario Schlosser, Oscar's Co-founder and advisor to the CEO, will discuss how Oscar's scalable technology and applied AI enables durable earnings power. That'll wrap up the presentations for the day. We'll ask all the presenters to come back up to the stage and we'll do a question and answer session. To close the meeting out, Mark will provide some final remarks, and for those in the room, we will have lunch available. We'd ask that you would stay for lunch if you can do that. So, good agenda for the morning. We're excited to get started. With that, it's my pleasure to introduce Oscar's Chief Executive Officer, Mark Bertolini.

Please welcome Mark Bertolini, Chief Executive Officer, to the stage.

Thank you, Chris. Good morning. Thank you for coming. It is always so nice to see so many smiling faces at an investor conference. You can try smiling. The information will come across a little better. We are going to discuss our vision and our strategy today, but I want to make a few comments about what strategy really means. Strategy is not buying an asset. Strategy is not coming up with a good idea. Strategy really is finding fundamental capabilities that differentiate the organization and applying those to unmet needs in the marketplace. The journey we have been on for the last 3 and a half years has been very much about creating those differentiating capabilities, those insights. We bought an asset along the way, but it was all part of having fundamental capabilities that meet upcoming changes in a market where unmet needs have not yet been met.

We are going to talk about that a little bit as we go through the discussion here. 50% of consumers feel that healthcare fails society's needs. We have $200 billion in active consumer medical debt across the U.S. today. Unacceptable, I would think, in the 21st century as a norm. Our mission is to empower consumers to build healthcare around them. They will drive innovations and better value and quality. The whole stream of consciousness here is to think about getting to a place where we can have consumers, through curated pricing, be able to make value-based decisions that matter to them, like every other piece of their household budget. Healthcare as number 1 is the only place where they cannot. They do not know what they are paying until they get a bill later on.

If we can create that ability in consumers, they will do the fundamental work longer term of reducing the cost and driving out high rents in the healthcare system, as they have done in every other market that they have had that opportunity. Our 2026 earnings, we raised them this morning to $600 million-$800 million. Our SG&A expense ratio is the same. We improved our MLR for the year based on what we are seeing in our underlying medical costs. Whoops, sorry. Wrong slide. First, sorry. Good stage direction. We have a deep bench. This is a gallery of rogues, but we have a deep bench, and we have the A team. The one thing I want to say about this group is that this group gets up every day thinking about this business. They are not worried about other parts of the business.

They are not worried about capital allocation between businesses. They are focused on the ACA, and that results in every employee in the organization being focused on the ACA. One of the amazing things I found when I joined the company in 2023 is every employee in this company is engaged in a mission to make healthcare better. We have employees that have been with us the whole way, and they are continuing to be involved. This leadership team is a pleasure to work with. They lead great people who every day work really hard. Now, guidance. Guidance is up $600 million-$800 million from $500 million-$700 million. Our SG&A ratio, same range. MLR has improved. $18.7 billion-$19 billion in revenue, not much change there as well.

But what it has done is it allowed us to make investments in other parts of the business, in the new stuff that is coming along. We will show you some numbers today. Scott will go through them in more detail. Those numbers for 2029 do not rely on a whole lot of what we do in the new businesses, but the investment in those new businesses is part of those projections. Those investments are the hard work that we need, because you never really show your work until you actually can prove it works. And so all of the investments that we have been making over the last three years, what we will make over the next three years, will prove to change the American healthcare marketplace and allow individuals to purchase their own healthcare the way they want. Three years ago, 2.5 years ago, we gave you these commitments.

At the time, in 2024, we had $9.2 billion in revenue and a 0.6% operating margin. Since then, we have had a 43% CAGR, which exceeded our 20% CAGR, and we have had 260 to 360 basis point improvement, with a commitment, which we are reaffirming, of at least 5% in 2027. Here are our long-term key strategic objectives. To become the number one consumer preferred AI native carrier through our strategic ACA advantage. The issue around this point is, we are not spending billions of dollars like the rest of the industry, healthcare industry, rationalizing platforms and cleaning up our data. From the very beginning, this company built a platform that was single-threaded, cloud native, with one version of the truth, which has allowed us to implement AI at scale with significant bottom line results to the company.

Mario will come up a little bit later and talk a bit about that. Second, is to unlock the full potential of the individual market to support healthcare needs for all Americans. We do not believe that the ACA is the last place for this company to be. The TAM is not big enough. The market opportunities are not great enough. The competition would be too fierce. So our view is, that we need to continue to expand the market opportunity for individuals to have the same opportunity that people in the ACA have in having to pick their network, and also to pick their product. Then finally, build the leading healthcare marketplace to serve people's health and financial goals in a larger individual market. It means more than insurance. It means GLP-1s. It means all the supplements that people buy.

It means all the lifestyle things that people buy in order to impact their health and live a healthier life and enjoy life. That is what the Lucie Health Marketplace is all about, and I will show you some of the statistics around that a little bit later. So let us talk about the future of the consumer healthcare marketplace. The era of employer health insurance is ending. 94% of employers are looking for a new solution for their healthcare costs. I talked with a CEO of a large multi-state company with 40,000 full-time employees, and he says, "I cannot buy healthcare economically any longer. My rates are going up on a self-funded basis, double digit. There has to be a better solution." On top of that, we want to be able to build the leading payer agnostic marketplace for health benefits, products and services through Lucie Health Marketplace.

The secret behind what we built is not that we built it for us, we built it for everyone. We're making a market. Lucie, with all of our competitors engaged, all having access to the same technologies, including some of Oscar's technologies, think about the new +Oscar. They will be able to use those tools to compete in a marketplace, and they will pay rents on that capability. The Lucie Health Marketplace becomes a place where all competitors can build a broader market.

It takes me back to the early 80s when four friends of mine and I started an HMO in Detroit, and we got together with all the other HMOs and said, "How do we take all that business away from the big carriers who have all the money, all the distribution?" By the time, 10 years later, all those big carriers, other than Aetna, were out of the health insurance business, for all intents and purposes. This is our opportunity. Create the market for the better good of the whole industry and all Americans, and then compete within it. Currently today, the ACA market has a total TAM of 49 million individuals. There are 19 in the ACA, and there's still 30 million uninsured individuals. That's our target. You can see the rest of it, and we'll talk about it as we progress through the presentation, but the opportunity goes to all 350 million Americans.