Oscar Health Stock Jumps After Report of Obamacare Subsidy Extension Proposal

Oscar Health, Inc. (NYSE: OSCR) experienced a dramatic surge in its stock price on Monday, November 24, 2025, jumping over 20% in premarket trading following a Politico report that the White House is preparing to propose a two-year extension of Affordable Care Act (ACA) subsidies. The stock closed at $16.87, up $3.39 or 25.15% from its previous close of $13.48, with trading volume reaching 22,180,533 shares compared to an average volume of 16,771,290.

The rally represents a significant development for the healthcare technology company, which has substantial exposure to the ACA marketplace and has been navigating uncertainty around the future of these critical subsidies set to expire at the end of 2025.

White House Plan Sparks Broad Insurer Rally and ACA Market Repricing

According to the Politico report, President Trump is expected to propose a two-year extension of Obamacare subsidies that would cap eligibility at individuals with income up to 700% of the federal poverty line, aligning with discussions from a bipartisan Senate group. This framework aims to address healthcare costs and spikes in ACA insurance premiums that have concerned consumers during the current open enrollment period. The proposed extension comes as Republicans in Congress have been awaiting the President’s position on healthcare policy, with many expressing surprise at the initial details that emerged.

The announcement triggered significant gains across healthcare insurers with ACA marketplace exposure. Alongside Oscar Health’s 25% surge, Centene Corporation (NYSE: CNC) shares jumped approximately 7.86%, while Molina Healthcare (NYSE: MOH) rose 4.63%. The potential extension provides critical stability for insurers like Oscar Health, which focuses specifically on the ACA individual market. Without these subsidies, health insurance prices were set to spike dramatically in 2025, a concern already noted by many enrollees during the current open enrollment period.

Senator Maggie Hassan acknowledged the proposal’s significance, stating it “represents a starting point for serious negotiations,” while noting concerns about some reported elements. The mixed reactions from lawmakers suggest ongoing debate, though the framework provides a clearer path forward than the previous uncertainty. For Oscar Health specifically, the extension could convince more people to sign up for insurance plans through the Marketplace, directly benefiting the company’s core business model as a healthcare technology company specializing in ACA plans.

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Rally Pushes OSCR to New Highs, but Analysts Warn of Downside Risk

As of 10:19:52 AM EST on November 24, 2025, Oscar Health stock was trading at $16.87, representing a market capitalization of $4.81 billion. The company’s performance metrics show year-to-date returns of 24.29%, significantly outpacing the S&P 500’s 13.40% gain over the same period. However, the stock remains down approximately 20% over the past 12 months, and the five-year return shows a decline of 53.60%. The company posted Q3 FY25 revenue of $2.99 billion with earnings of -$137.45 million, though it beat earnings estimates with an actual EPS of -$0.53 versus an estimated -$0.58.

Despite Monday’s rally, Wall Street analysts maintain a cautious stance on Oscar Health. The consensus rating is “Moderate Sell,” based on one Hold and three Sell ratings issued over the past three months. The average analyst price target stands at $13.82, which would represent a 15.01% downside from the current price of $16.70. The most recent rating action came from Wells Fargo on November 13, 2025, which maintained its “Underweight” rating while lowering the price target from $14 to $11.

The company’s financial highlights reveal challenges, with a profit margin of -2.16%, return on assets of -2.57%, and return on equity of -22.24%. Oscar Health posted trailing twelve-month revenue of $11.29 billion with a net loss of $244.09 million. However, the company maintains a strong balance sheet with total cash of $3.04 billion and generated levered free cash flow of $515.9 million. The current uncertainty around ACA subsidies has been a key factor weighing on investor sentiment, making Monday’s news particularly significant for the company’s outlook and its ability to attract and retain customers in the competitive health insurance marketplace.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.