Shares of Oscar Health, Inc. (OSCR) surged 23.29% 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. Additionally, the plan may introduce minimum premium payments and offer options for enrollees to receive part of their tax credit in tax-advantaged savings accounts. These measures, if implemented, could significantly impact Oscar Health's customer base and financial outlook.

While the White House has not officially confirmed these details, the market's reaction suggests strong optimism about the potential benefits for health insurance companies. As trading continues, investors will be closely watching for any official announcements and further developments in the healthcare policy landscape.