Shares of Oscar Health, Inc. (OSCR) surged 23.37% in pre-market trading on Monday, as investors reacted positively to reports of a potential extension of Obamacare subsidies. The significant uptick comes amid broader gains in the health insurance sector, sparked by news of the Trump administration's plans to unveil a new health policy framework.

According to sources familiar with the matter, the White House is expected to propose a two-year extension of Affordable Care Act (ACA) subsidies that were due to expire at the end of next month. This extension, coupled with new eligibility limits, could provide a substantial boost to health insurers like Oscar Health, which specializes in ACA marketplace plans. The proposed framework reportedly includes extending subsidies to individuals with incomes up to 700% of the federal poverty line, aligning with discussions among a bipartisan group of senators.

The anticipated announcement has boosted investor sentiment across the health insurance sector. Along with Oscar Health's dramatic pre-market surge, other major players in the industry also saw significant gains. Centene Corporation was up 9.7%, UnitedHealth Group gained 2.7%, and other insurers like Elevance Health and Humana also experienced pre-market increases. The extension of subsidies could potentially stabilize the ACA marketplace and benefit insurers by maintaining enrollment levels and reducing uncertainty in the health insurance market.