Health insurance company shares decline as last Medicare Advantage rates fall short – NBC Chicago

Medicare Advantage Payments Cut: Health Insurers Fall Amid Rising Medical Costs

In recent news, the Biden administration has announced that government payments to Medicare Advantage plans will only increase by 3.7% year over year, which has caused shares of U.S. health insurers to fall. This decision adds additional pressure on insurers who are already dealing with high medical costs and uncertainty following the ransomware attack on UnitedHealth Group’s tech unit.

The Centers for Medicare and Medicaid Services made the announcement, and several health insurers saw declines in their stock prices as a result. CVS Health shares fell over 8%, while UnitedHealth Group’s stock slid nearly 7%. Elevance Health and Centene also experienced stock declines of more than 3% and 6% respectively. Humana, which is heavily reliant on private Medicare plans, saw its stock fall by over 10%.

The announcement is particularly impactful for companies that rely on Medicare Advantage plans for growth and profits. The rates set by the Centers for Medicare and Medicaid Services have significant implications for insurers, impacting monthly premiums, plan benefits, and ultimately, profitability. Medicare Advantage plans are a popular option for over half of Medicare beneficiaries due to their lower monthly premiums and added benefits not available with traditional Medicare plans, according to KFF.

Leave a Reply

Despite current cost-price squeeze, Purdue Ag Economy Barometer reflects optimism about future. Previous post Uncertain Future for Farmers: Purdue Ag Economist James Mintert Discusses Recent Barometer Results
Vikings suspend Offensive Coordinator Wes Phillips for three weeks after his December arrest Next post Vikings Offensive Coordinator’s DUI Arrest: A Lesson in Humility and Discipline