Health stocks tank from flat Medicare Advantage payment rate
Shares of several large health insurance companies tanked on Tuesday after the Trump administration proposed keeping Medicare Advantage reimbursement rates roughly the same through 2027.
TL;DR
- Several large health insurance companies saw their stock prices fall significantly after the Trump administration proposed flat Medicare Advantage reimbursement rates.
- Humana and UnitedHealth Group experienced drops of approximately 20%, while CVS Health, Elevance, and Centene Corp also saw declines.
- The proposed reimbursement rate increase for Medicare Advantage providers in 2027 is a mere 0.09%, a sharp decrease from the 5% increase for 2026.
- CMS states the proposal aims to incentivize payment accuracy and promote long-term program stability.
- Critics from America's Health Insurance Plans suggest this could lead to benefit cuts and increased costs for 35 million seniors and people with disabilities.