Obamacare Lifeline from Trump Fuels 18% OSCR Jump. Time to Buy Now?[Stocks](https://moneymorning.com/category/article/stocks/) # Obamacare Lifeline from Trump Fuels 18% OSCR Jump. Time to Buy Now?  by Rich Duprey  November 24, 2025  Share it: ## Oscar Health Surges on Trump Obamacare Pitch: Real Turnaround or Hype? **Oscar Health** ( [OSCR](https://moneymorning.com/stocks/oscr/)) shares are surging 18% in premarket trading this morning following reports of a White House proposal tied to President Donald Trump's comments on extending Obamacare subsidies. The digital insurer, which has battled profitability challenges since its 2021 IPO, saw its stock price climb toward $15 amid broader optimism in the Affordable Care Act (ACA) sector. This move comes as enhanced premium tax credits – originally enacted during the pandemic and due to expire Dec. 31 – are poised to vanish, potentially spiking premiums and eroding enrollment. Trump's reported openness to a "right deal" on subsidies has reignited hopes for stability in the individual market, where Oscar derives most of its revenue. ## A Conservative Twist on ACA Lifeline _Politico_ reports the framework outlines a two-year extension of ACA subsidies to avert premium hikes for millions of enrollees. Key elements include income eligibility caps at 700% of the federal poverty level (about $103,000 for an individual), requiring minimum premium contributions from higher earners, and redirecting some tax credits into tax-advantaged savings accounts for those opting into lower-premium plans. Trump endorsed the savings account idea as a market-friendly reform, signaling his direct involvement. The White House aims to announce details as early as this week, framing it as a negotiation tool amid bipartisan talks to address expiring subsidies. This isn't a full repeal but a targeted patch: Congress would need to fund cost-sharing reductions directly, potentially lowering out-of-pocket costs and stabilizing marketplaces.  ## Why Oscar Health Stands to Gain Big As a tech-forward player focused on ACA individual and small-group plans, Oscar could see outsized benefits. Enhanced subsidies have driven enrollment growth – Oscar's membership hit 1.5 million in Q3, up 40% year-over-year – by making plans affordable. Without extension, analysts estimate 5 million to 10 million could drop coverage, hammering revenues for pure-play ACA insurers like Oscar, which reported $2.99 billion in Q3 revenue but a $137.5 million net loss. The proposal's savings account feature aligns with Oscar's app-based model, enabling seamless premium adjustments and consumer incentives. Recent moves, like a $410 million AI-focused raise, position Oscar for efficiency gains. With shares down 43% from their recent highs and flat year-to-date before this morning's surge, this proposal could give OSCR a tailwind. ## Back in the Pink of Health? Should investors pile into OSCR now? The subsidy extension could accelerate a recovery, pushing 2026 enrollment higher and margins toward breakeven. Oscar reaffirmed its $12 billion full-year revenue outlook despite Q3 misses, but caution is warranted. With a divided Congress, negotiations could drag well into 2026, delaying any implementation. Trump's "right deal" rhetoric hints at conservative concessions, like tighter eligibility, which might cap upside for high-income enrollees. OSCR has its own risks. The company grapples with an 88.5% medical loss ratio (MLR), signaling rising claims costs, and it has grappled with execution issues previously. Broader threats include regulatory scrutiny on AI underwriting and competition from giants like **UnitedHealth** ( [UNH](https://moneymorning.com/stocks/unh/)). Analysts' median price target sits at $12.88, implying it is overvalued, and "Hold" ratings dominate. While Trump's proposal offers hope for Oscar's trajectory, it's no sure bet. For risk-tolerant growth seekers betting on digital disruption in healthcare, put OSCR on your watchlist. Everyone else should wait for legislative clarity. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Company This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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