Shares of health insurance companies experienced a significant drop after regulators announced that the final rates for those selling private Medicare Advantage plans will remain the same as the government's initial proposal in January. This decision has led to a notable decline in the stock prices of major insurers, including Humana (-9%), UnitedHealth (-4%), and CVS (-5%), with premarket losses ranging between 1% and 9%. The unchanged Medicare Advantage rates have sparked fears of margin hits among investors, as these rates are crucial for determining the reimbursement to providers of Medicare Advantage health plans. This development is particularly noteworthy as it marks a rare occurrence where final rates have not improved from the initial proposals, an event that has happened only once in the past decade according to JPMorgan research.
Humana (-14%) and United Health (-6) down big today as Medicare Advantage plans suffer from higher costs but no change in govt payments $HUM $UNH $CNC Last night, the Centers for Medicare and Medicaid Services announced it would leave an earlier payment proposal unchanged, which… https://t.co/Y5DIRyz1ea
Health insurer stocks slide as final Medicare Advantage rates disappoint https://t.co/2Za5AxlEik
Analyst downgrades Humana on unchanged Medicare Advantage rates, insurers slide https://t.co/rotxHYOAXg https://t.co/CWUxMmRKzs
Health insurers are tumbling after US regulators didn’t boost payments for private Medicare plans. Only once in the past 10 years have final rates not improved from regulators’ initial proposals, according to research from JPMorgan. https://t.co/MIU1gEyqyD by @jtozz https://t.co/uEKgtIlwcS
Humana tumbles, UnitedHealth and CVS slide on Medicare Advantage hit https://t.co/DZ4cy6k5Tg
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
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