Analysts Downgrade Oscar’s Stock Due to ACA Exchange Uncertainty

Jul 17
Jul 17, 2025

Two Wall Street analysts recently downgraded Oscar Health, Inc.’s stock, citing concerns about the Affordable Care Act exchange market. Ari Gottlieb, principal of health care consulting form A2 Strategies, tells AIS Health that the worries are warranted considering Oscar’s exposure to the exchanges. He adds that analysts are “appropriately recognizing that beyond all the macro risks around what’s going to happen to the exchanges, there also is an imminent collapse of profitability in the exchange sector.”

Wells Fargo analysts in a July 11 note downgraded their rating on Oscar to “underweight” and set a price target of $10 per share, representing a 35.6% decline from the company’s stock price as of that day. They wrote that they lowered their expectations “as evidence of rising exchange acuity continues to build” and noted that “pricing for 2025 does not appear adequate to cover cost trend + increasing market acuity.”
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Tim Casey

Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.