Health insurance stocks rallied Thursday after the House of Representatives teed up a vote to extend Affordable Care Act tax credits that expired at the end of 2025.
The vote follows a break from party leadership by a group of moderate Republicans who revived the measure amid concerns that sharply rising health insurance premiums could become a political liability ahead of this year’s midterm elections.
Why the vote matters for insurers
The ACA tax credits subsidize Marketplace health plans sold by private insurers, making coverage more affordable for millions of Americans. With the credits having expired, insurers were expected to raise premiums to account for higher costs of care.
Extending the subsidies would help stabilize enrollment and pricing, directly benefiting companies with heavy exposure to ACA plans.
Stocks moving on the news
Shares of major ACA Marketplace providers rose on the development, including Oscar Health $OSCR ( ▲ 2.55% ) , Molina Healthcare $MOH ( ▲ 4.04% ) , Centene $CNC ( ▲ 2.51% ) , and UnitedHealthcare $UNH ( ▲ 1.51% ) .
While the measure is expected to pass the House with bipartisan support, it faces a tougher path in the Senate, where its fate remains uncertain.
What’s next
The tax credits were originally expanded as part of a 2021 COVID-19 relief package passed by a Democrat-controlled Congress. Whether lawmakers can fully reinstate them will determine how sharply premiums rise and how insurers position themselves for 2026.