What Happened?
A number of stocks jumped in the afternoon session after a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies. The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Genomics & Sequencing company PacBio (NASDAQ:PACB) jumped 7.7%. Is now the time to buy PacBio? Access our full analysis report here, it’s free for active Edge members.
- Branded Pharmaceuticals company Bristol-Myers Squibb (NYSE:BMY) jumped 4.5%. Is now the time to buy Bristol-Myers Squibb? Access our full analysis report here, it’s free for active Edge members.
- Health Insurance Providers company Oscar Health (NYSE:OSCR) jumped 22.1%. Is now the time to buy Oscar Health? Access our full analysis report here, it’s free for active Edge members.
- Health Insurance Providers company Centene (NYSE:CNC) jumped 7.3%. Is now the time to buy Centene? Access our full analysis report here, it’s free for active Edge members.
- Health Insurance Providers company Molina Healthcare (NYSE:MOH) jumped 4.3%. Is now the time to buy Molina Healthcare? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Oscar Health (OSCR)
Oscar Health’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. But moves this big are rare even for Oscar Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.6% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Oscar Health is up 23.8% since the beginning of the year, but at $16.78 per share, it is still trading 25.3% below its 52-week high of $22.47 from October 2025. Investors who bought $1,000 worth of Oscar Health’s shares at the IPO in March 2021 would now be looking at an investment worth $482.10.
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