Oscar Health slips on Obamacare fraud crackdown, analyst calls selloff 'overly punitive'

** Shares of health insurer Oscar Health OSCR.N fall 1.8% to $30.74

** The Trump administration halts Obamacare enrollment for more than 760,000 people it believes are fraudulently enrolled

** Last month, the US Centers for Medicare & Medicaid Services canceled about 315,000 health plans and would review another 419,000 to 450,000 enrollments to verify eligibility

** Baird analysts says CMS' headline is "in line with, if not slightly favorable to, the assumptions contemplated in OSCR's guidance," making today's stock drop "overly punitive"

** OSCR had already flagged about 1 mln potentially unauthorized members, so the roughly 760,000 affected members announced by CMS is lower than initially feared and is seen as a modest positive, Baird says

** CMS says unauthorized enrollments could lead to up to $6.6 bln in improper federal spending in 2026, while the administration says its fraud crackdown could save about $2.2 bln in taxpayer money

** As of last close, stock more than double YTD