Oscar Health, Inc. (OSCR) stock soared 23.29% in pre-market trading on Monday, as investors reacted to reports of an imminent White House announcement regarding a two-year extension of Obamacare subsidies. The news has sparked a rally among health insurance stocks, with Oscar Health leading the gains.

According to sources close to the matter, the White House is expected to unveil a health policy framework that includes extending Affordable Care Act (ACA) subsidies set to expire at the end of next month. The proposed plan also reportedly includes new limits on eligibility, such as income caps for enrollees to qualify for ACA tax credits and minimum premium payments. This move is seen as a potential compromise between different factions within the Republican party.

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.