Oscar Health (OSCR) shares closed up 22% higher on Nov. 24 after a Politico report said President Donald Trump’s administration is considering a two-year extension on the Affordable Care Act (ACA) subsidies. 

The U.S. government’s upcoming health policy framework will add new income caps – up to 700% of the federal poverty line – and introduce minimum premium payments to curb rising costs, the report added. 

Despite today’s rally, Oscar Health stock remains down some 30% versus its year-to-date high. 

What ACA Extension Means for Oscar Health Stock

A two-year extension on ACA subsidies will be meaningfully positive for OSCR shares since the New York-headquartered firm primarily operates on Affordable Care Act marketplaces. 

Expanded income caps will broaden eligibility, meaning more customers will potentially be able to access subsidized coverage. 

Meanwhile, minimum premium requirements will help stabilize pricing, reducing the risk of sharp cost increases that often drive members away. 

Together, these measures may strengthen enrollment, improve retention, and provide Oscar Health with greater revenue visibility. 

For a business that depends on policy support for growth, the indicated framework improves both demand and investor confidence, which is why the stock rallied today. 

It’s Hard to Make a Strong Case for Owning OSCR Shares

Despite the expected Obamacare extension, Oscar Health shares remain unattractive as a long-term holding because the insurance firm is yet to achieve sustainable profitability. 

Investors are cautioned against chasing the momentum in OSCR also because it failed to breach a key resistance coinciding with its 100-day moving average (MA) at the $17 level today. 

This suggests the broader downtrend in the NYSE-listed firm is still intact. 

Historically (over the past four year), the health-tech stock has tanked more than 10% in December, which further bolsters the case for capitalizing on the strength and unloading OSCR on Monday. 

Wall Street Recommends Cutting Exposure to Oscar Health

Wall Street analysts also recommend selling Oscar Health stock at current levels. 

According to Barchart, the consensus rating on OSCR shares remains at “Moderate Sell” with the mean target of less than $13 indicating potential downside of well over 20% from here. 

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