Oscar Health Stock Soars On Reports Of Two-Year Obamacare Subsidy Extension

• Politico reported on Sunday, citing people familiar with the matter, that the health policy framework will include a two-year extension of Obamacare subsidies. 
• The White House’s plan is expected to include new income caps for enrollees to qualify for the ACA tax credits as well as minimum premium payments, the report said.
• Oscar’s performance is closely tied to the policies and subsidies related to the ACA.

Shares of Oscar Health Inc. (OSCR) jumped as much as 20% on Monday morning following reports that the White House expects to unveil a health policy framework soon.

Politico reported on Sunday, citing people familiar with the matter, that the health policy framework will include a two-year extension of Obamacare subsidies, which are set to expire at the end of next month, and new eligibility limits to address premium spikes set to hit Affordable Care Act (ACA) enrollees.

The New Plan

The White House’s plan is expected to include new income caps for enrollees to qualify for the ACA tax credits as well as minimum premium payments, Politico said.

The cap will limit the subsidies to individuals with income up to 700% of the federal poverty line, the report noted. The White House’s plan would call on Congress to appropriate funds for cost-sharing reductions, which would reduce out-of-pocket health costs for ACA plans, it added.

Oscar Health is an insurance company that operates on the Affordable Care Act (ACA), or "Obamacare," marketplaces. Its performance is closely tied to the policies and subsidies related to the ACA.

“Brokers have all of the information about people who may lose subsidies. Should the enhanced premium tax credits get extended, we know who the members today are who would be impacted by that. The brokers know who they are. We would certainly be able to quickly outreach to them and try to bring them also into the marketplace,” Oscar CFO Scott Blackley said about the loss of subsidies earlier this month.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around OSCR jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘high’ levels.

OSCR stock is down by 4% over the past 12 months. 

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