OSCR, ELV, CNC: Why Investors Are Selling Health-Insurance Stocks

Shares of top health insurers, including Oscar Health (OSCR), Elevance Health (ELV), and Centene (CNC), fell on Monday. The recent decline followed President Trump's criticism of insurers on social media, as Congress neared a deal to end the government shutdown. Among them, Oscar Health was hit the hardest, falling more than 17%. CNC and ELV also declined by over 8% and 4.41%, respectively. Other healthcare stocks also declined — UnitedHealth (UNH) slipped 0.81%, Molina Healthcare (MOH) dropped 7.34%, Humana (HUM) fell 5.4%, and Cigna Group (CI) lost 2.43%.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. For context, the U.S. federal government has been in a shutdown since October 1, as lawmakers clash over funding for the 2026 fiscal year. As talks to end the government shutdown are progressing, there's still no agreement on extending the health insurance subsidies that Democrats have been pushing for. Investors may stay cautious until there's more certainty about future healthcare funding and policy direction. Government Shutdown Nears an End After weeks of tense talks, lawmakers are close to ending the historic government shutdown. The Senate voted on Sunday to move forward with a plan to end the record-long government shutdown, but the proposal reportedly leaves out an extension of the Affordable Care Act (ACA) tax credits. The ACA's tax credits, which help people pay for private health insurance plans, have been a key issue in the ongoing talks to reopen the government. Over the weekend, President Trump posted on Truth Social, saying that the money should go directly to the people instead of to what he called the 'fat cat' insurance companies in the healthcare system. These subsidies, which are set to expire in less than two months, have significantly lowered premium costs for plans purchased through the ACA marketplaces. What This Could Mean for Health Insurance Companies While reopening the government brings some stability back to the market, uncertainty around the future of ACA subsidies could weigh on insurers that depend on them. If the government decides to send these funds directly to individuals instead of insurance companies, it could reduce revenues and profits for major insurers. The tax credits currently make private health plans more affordable, so any change could lead to fewer enrollments, lower premium income, and added instability in the ACA marketplace. Which Healthcare Stock Is a Strong Buy, According to Analysts? Using the TipRanks Stock Comparison tool, we compared these healthcare stocks. Among these companies, Cigna has a Strong Buy rating from analysts and offers an upside of over 30% at a stock price target of $258.16. Below is a screenshot for reference.