Health insurance companies’ Medicare discount rates plummet

UnitedHealth (united nations institutes of health) and humana (snort) plunged Monday night, while other health insurers such as CVS Health (CVS) and Cigna (CIThe day ended mixed after the Biden administration announced that final Medicare Advantage rates in 2025 would not change from the original plan in January.


The Centers for Medicare and Medicaid Services announced late Monday that private Medicare Advantage rates will increase by an average of 3.7% in 2025. That’s what CMS proposed in January. Typically regulators will increase rates based on the final plan.

UnitedHealth, Humana largest players

UnitedHealth and Humana are the largest Medicare Advantage players, with Humana particularly at risk because Medicare accounts for a large portion of its total revenue. Humana shares plunged 9.5% in after-hours trading, on track to hit a four-year low. UnitedHealth shares fell 4.5%.

Pharmacy and insurance giant CVS Health are also important players in Medicare Advantage. CVS shares fell 6% overnight.

Cigna shares fell 1.3% as the company has less exposure to the Medicare Advantage market.

UnitedHealth is one of the largest Medicare Advantage players, but smaller players such as centene (CNC system) and Molina Healthcare (ministry of health), primarily known as Medicaid insurance companies, have also been hit. Centene and Molina fell 2.9% and 2.3% respectively.

Highly healthy (very low voltage) fell 3.7%. ELV stock is just below its recent 52-week high and is expected to fall below its 50-day line.

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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