Key Stats for Oscar Health Stock
- YTD Price Change for Oscar Health stock: 10%
- $OSCR Share Price as of Dec. 23: $14.84
- 52-Week High: $23.80
- $OSCR Stock Price Target: $14.67
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What Happened?
Oscar Health (OSCR) stock is down over 30% from its 52-week high due to multiple reasons. The company reported a larger-than-expected third-quarter loss, while political uncertainty continues to cloud the healthcare landscape.
In Q3 of 2025, the health insurer posted a net loss of $0.53 per share, with total expenses of $3.11 billion outpacing its $2.99 billion in revenue.
Earlier this year, President Donald Trump also proposed redirecting federal healthcare funding directly to individuals rather than through traditional insurance companies.
This suggestion raised immediate concerns about the viability of the current health insurance business model and how companies like Oscar Health would operate if such a policy were implemented.
The company’s CFO Richard Blackley acknowledged on a recent investor call that Oscar Health faces significant headwinds, including elevated medical costs and the likely expiration of enhanced ACA subsidies.
The company posted a quarterly operating loss of approximately $129 million, driven in part by higher utilization of medical services by its members.
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What the Market Is Telling Us About Oscar Health Stock
The sharp decline in Oscar Health stock reflects investor anxiety about multiple converging pressures. Rising medical loss ratios, political uncertainty around healthcare funding, and the impending loss of pandemic-era subsidies are all weighing on sentiment.
However, Oscar Health is positioning itself for what management calls a “transformational 2026.” The company raised prices by roughly 28% year-over-year and moved from being the lowest-priced option in 15% of its Silver plan markets to 30% of markets.
Management believes this more competitive pricing, combined with disciplined underwriting, sets it up to gain market share while improving profitability.
CFO Blackley emphasized that Oscar Health has been planning for a world without enhanced subsidies since early last year.
The company expects the ACA marketplace to contract by 20% to 30% in 2026 as members lose affordability. To counter this, Oscar Health created new plan designs that allow members to “buy down” to lower out-of-pocket premiums, even if it means higher deductibles and coinsurance.
Early open enrollment results have been encouraging for Oscar Health stock, with retention tracking better than the historically low levels management had anticipated.
The company also benefits from having over $1 billion in excess capital and parent cash, as well as quota share arrangements that reduce its capital burden for growth.
The most significant risk going forward, according to Blackley, is whether Oscar Health and its competitors correctly priced for market morbidity changes in 2026. If the industry got the risk adjustment calculations wrong, the entire sector could face margin pressure.
But with most major insurers pricing in a similar range, Oscar Health management believes it has built in enough cushion to absorb potential volatility while still delivering “significant profitability and margin improvement” next year.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
