Shares of health insurance companies experienced a significant decline after the Centers for Medicare & Medicaid Services (CMS) announced the final rates for private Medicare Advantage plans for CY 2025, introducing significant changes. The announcement confirmed that rates would remain in line with the government's initial proposal made in January, despite the health insurers' efforts to negotiate higher rates based on their medical cost data. The CMS decision introduces a 3.70% increase in payments to Medicare Advantage plans and implements a cap on out-of-pocket costs for Medicare Part D at $2,000. This led to a sell-off in stocks of major insurers such as CVS Health, UnitedHealth Group, Cigna, and Humana, with shares dropping between 4% and 9% in premarket trading. Health insurers, incensed by the decision, had hoped for more favorable payment adjustments and expressed disappointment with the final rates, fearing a hit to their margins. The disappointment significantly sank the stocks of major companies like UnitedHealth and Humana.
Medicare Advantage rate disappointment sinks stocks of UnitedHealth, Humana https://t.co/8FY1oCsI7H
Health Insurers Tumble as Final Medicare Advantage Rates Disappoint - BBG $HUM -9% pre $UNH -4% pre $CVS -5% pre $ELV - 4% pre $CNC -3% pre $CI -1% pre https://t.co/H4OOj4kcMk
US health insurers slide as final Medicare Advantage rate sparks margin hit fears https://t.co/4ebg2UYSz8 https://t.co/k8zWxUZq2k
⚠️ US HEALTH INSURERS SLIDE AS FINAL MEDICARE ADVANTAGE RATE SPARKS MARGIN HIT FEARS Full Story → https://t.co/0oBPsoR4KO Shares of U.S. health insurers dropped between 4% and 9% premarket on Tuesday after reimbursement rates to providers of Medicare Advantage health plans…
Health insurance stocks dip as final Medicare Advantage rates remain unchanged https://t.co/vdYGJ3w2AF https://t.co/TKJ4sXcz4U
Humana, Other Insurers Tumble as 2025 Medicare Advantage Rate Increases Disappoint $HUM https://t.co/6i81GqMDII
Final 2025 Medicare Advantage payment rates are here. Health insurers are gonna be incensed. Insurers whined and begged for Medicare to look at their medical cost data, and the federal gov't told them to chill out with that noise. https://t.co/ki3xkDmB0U
Shares of health insurance companies fell after regulators aid the final rates for those selling private Medicare Advantage plans will be the same as the government’s initial proposal in January. https://t.co/pDmRty3HQy
🚨 $CVS $UNH $CI $HUM Selling off because the CMS announcement for CY 2025 introduces significant changes to Medicare Advantage and Part D payment structures, including a 3.70% increase in payments to MA plans and a cap on out-of-pocket costs for Medicare Part D at $2,000. These…