Oscar Health (OSCR), the startup health insurance company heavily built on its technology capabilities, debuted on the New York Stock Exchange Wednesday at $36 per share, under the IPO price of $39 per share, with a valuation of more than $7 billion.
But the fall didn't blunt the enthusiasm of CEO Mario Schlosser, who joined Yahoo Finance to discuss the decision to go public, as well as how he envisions the company to impact the health insurance industry in coming years.
"Ten years from now, I think we'll have contributed to lowering health-care costs, and that remains our far end goal and what we do everything at Oscar," he said.
In its S-1 filings, Oscar noted it has not been profitable since inception in 2012 and cannot guarantee it will ever turn a profit, as it faces steep competition from larger companies with deeper pockets and broader networks.
"Some of the health insurers with which we compete have greater financial and other resources, offer a broader scope of products, and may be able to price their products more competitively than ours," the company noted in its filing.
But with more stability now apparent in individual markets, being the lowest-priced plan isn't the only winning factor.
"We were only the lowest priced in 10% of markets in the last open enrollment, and yet we outgrew the market by a factor of 4 or 5 again, while lowering our medical loss ratio, while lowering overhead costs as well. That triple whammy is very difficult to get if you're an insurance company," Schlosser said.
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