The Bull Case For Oscar Health (OSCR) Could Change Following New Employer Insurance Partnership With Hy-Vee

• Oscar Health, Inc. and Hy-Vee, Inc. recently unveiled a new employer health insurance plan combining Oscar’s technology platform with Hy-Vee’s retail and pharmacy network, offering concierge care and $0 cost services for employees through the “Hy-Vee Health with Oscar” program.
• This collaboration introduces a comprehensive suite of health and shopping benefits, aiming to simplify healthcare delivery for employees while helping employers manage costs.
• We’ll explore how Oscar’s entry into the employer health insurance space with Hy-Vee could influence its growth opportunities and investment narrative.

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Oscar Health Investment Narrative Recap

For Oscar Health shareholders, the core belief centers on the company’s ability to deliver efficient, technology-driven healthcare solutions at scale while expanding into new markets like employer-sponsored insurance. The recently announced Hy-Vee partnership adds a fresh avenue for growth, but in the short term, the most important catalyst remains Oscar’s margin recovery efforts amid persistent medical cost pressures, this news does not materially change the urgency around managing claims costs, which is still the biggest risk to the business right now.

The company’s reaffirmed 2025 earnings guidance builds context for this partnership: while Oscar expects US$12.0 billion to US$12.2 billion in revenue, it still projects a significant operational loss of US$200 million to US$300 million for the year, reflecting ongoing profitability challenges. This remains highly relevant as investors weigh the impact of new partnerships on Oscar’s path to breakeven.

Yet, what sets Oscar apart from legacy insurers could also pressure the bottom line if...

Read the full narrative on Oscar Health (it's free!)

Oscar Health's narrative projects $12.6 billion in revenue and $440.0 million in earnings by 2028. This requires 5.4% yearly revenue growth and a $601.2 million earnings increase from current earnings of -$161.2 million.

Uncover how Oscar Health's forecasts yield a $11.14 fair value, a 29% downside to its current price.

Exploring Other Perspectives

Nineteen members of the Simply Wall St Community estimate Oscar Health’s fair value anywhere from US$11.14 to US$45.34 per share. While confidence in cost management is a key catalyst, continued margin pressure is on many minds, prompting readers to consider a range of alternative views before making up their own minds.

Explore 19 other fair value estimates on Oscar Health - why the stock might be worth 29% less than the current price!

Build Your Own Oscar Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Oscar Health research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Oscar Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Oscar Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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