Oscar Health (OSCR) shares surged 22% after reports of a potential two-year extension on ACA subsidies. The U.S. government plans to introduce new income caps and minimum premium payments to control costs, despite a 30% drop from its year-to-date high.

The extension of ACA subsidies could significantly benefit OSCR as it primarily operates on ACA marketplaces. Expanded income caps may increase eligibility, while minimum premiums could stabilize pricing and boost enrollment and revenue for Oscar Health.

Investor caution is advised despite the positive news, as OSCR has yet to achieve sustainable profitability. The stock failed to break a key resistance level, indicating a continued downtrend. Historically, OSCR has seen a decline in December, prompting Wall Street analysts to recommend selling at current levels.

Barchart maintains a consensus “Moderate Sell” rating on OSCR shares with a mean target price of less than $13, suggesting a potential downside of over 20% from current levels. Investors are urged to capitalize on the recent strength and consider selling OSCR on Monday.

Read more at Yahoo Finance: Oscar Health Jumps in Hopes of Obamacare Extensions. Should You Buy OSCR Stock Here?