Oscar Health, Centene Stocks Surge. Here’s Why.

Insurance stocks jumped after a report said the White House would propose a two-year extension for Affordable Care Act subsidies. (Gabby Jones/Bloomberg)

Key Points

• A report indicates President Donald Trump will propose a two-year extension for Affordable Care Act insurance subsidies.
• Oscar Health and Centene shares surge following the report.
• The proposal aims to prevent premium increases in 2026 as 24.3 million people enrolled in marketplace plans in 2025.

Shares of health insurers Oscar Health and Centene spiked Monday after a report said President Donald Trump would propose a two-year extension for Affordable Care Act insurance subsidies.

The White House expects to unveil plans to extend the insurance premium subsidies, which are set to expire at year’s end, Politico reported on Sunday. The policy proposal also is expected to include income eligibility caps to qualify for the ACA tax credits and minimum premium payments.

“Until President Trump makes an announcement himself, any reporting about the Administration’s healthcare positions is mere speculation,” White House spokesman Kush Desai said in a statement to Barron’s.

Wall Street appeared to take the report at face value. Oscar Health, an insurer that offers plans through what is widely known as Obamacare, was up 22% on Monday. Centene, the largest plan provider on the ACA marketplaces, jumped 4.6%. Molina Healthcare rose 2.6%.

The proposal raises hopes that legislators can reach a deal to keep the ACA subsidies and prevent premiums from skyrocketing next year. A record 24.3 million Americans had Obamacare this year; millions are expected to lose coverage without subsidies.

That looming expiration has weighed on insurance stocks this year. Centene and Molina have declined 36.7% and 59%, respectively. Oscar is up 23%, according to FactSet.

The companies didn’t respond to requests from Barron’s for comment.

Write to Nate Wolf at nate.wolf@barrons.com