Four-year old insurance startup Oscar Insurance Corp. announced Tuesday it plans to pull out of two Obamacare marketplaces in the wake of massive losses largely attributed to Affordable Care Act plans.
The insurer is slated to leave markets in Dallas, an area they entered just this year, and New Jersey next year.
“The individual market isn’t working as intended and there are weaknesses in the way it’s been set up,” Chief Executive Officer Mario Schlosser told Bloomberg. “We want to focus on the markets we understand well, we want to focus on the markets where we have our own model in place.
The company, which was largely backed by venture capitalists, took a $105 million hit in 2015.
Of its roughly 130,000 customers, 7,000 are in the Dallas market while 26,000 are in the Garden State.
Despite pulling out of two marketplaces, the insurer plans to enter the San Francisco market, and will remain active in New York, San Antonio, Los Angeles and Orange County.
Oscar is the second insurer to leave announce it plans to leave Obamacare exchanges next year – earlier this month Aetna announced it plans to leave the Obamacare marketplace after losing after losing $200 million in the past three months.
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