Oscar Health's stock plunged 6.79% in pre-market trading on Tuesday, following two significant negative developments that weighed on investor sentiment.
The health insurer reported fourth-quarter revenue of $2,805.235 million, which fell short of the Ibes estimate of $3,124 million. This revenue miss indicates weaker-than-expected financial performance for the quarter.
Additionally, Oscar Health was among eight Affordable Care Act health insurers subpoenaed by Republican House Judiciary Chair Jim Jordan as part of a widening investigation into potential fraud surrounding the use of premium subsidies. The regulatory scrutiny adds uncertainty and potential legal risks for the company.
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