Core Viewpoint - Oscar Health (OSCR) shares experienced a 22% increase following a report that the Trump administration is considering a two-year extension on Affordable Care Act (ACA) subsidies, which could positively impact the company's operations and stock performance [1][3][4]. Group 1: Impact of ACA Extension - The proposed two-year extension on ACA subsidies is expected to be significantly beneficial for Oscar Health, as the company primarily operates within ACA marketplaces [3]. - New income caps, allowing eligibility up to 700% of the federal poverty line, will potentially increase the customer base accessing subsidized coverage [3][4]. - Minimum premium requirements are anticipated to stabilize pricing, reducing the risk of sharp cost increases that could drive members away [3][4]. Group 2: Stock Performance and Market Sentiment - Despite the recent rally, Oscar Health's stock is still down approximately 30% compared to its year-to-date high [2]. - Analysts suggest that the stock remains unattractive for long-term holding due to the company's lack of sustainable profitability [5]. - The stock failed to breach a key resistance level at $17, indicating that the broader downtrend is still in effect [5]. - Historical data shows that the health-tech stock has declined more than 10% in December over the past four years, suggesting a potential strategy for investors to capitalize on current strength and consider selling [6]. Group 3: Analyst Recommendations - Wall Street analysts recommend reducing exposure to Oscar Health stock, with a consensus rating of "Moderate Sell" [7][8]. - The mean target price for OSCR shares is less than $13, indicating a potential downside of over 20% from current levels [8].