Health insurer stocks are tumbling after the market close on Monday following a report indicating the Trump administration will propose essentially unchanged rates for Medicare insurers next year.
- UnitedHealth Group stock is among today’s weakest performers. What’s behind UNH decline?
Roughly Flat Rates Report Hits Medicare Insurers
The Trump administration reportedly plans to propose “roughly flat” rates for Medicare insurers in 2027, setting up payments to plans to increase by approximately 0.09% next year, according to The Wall Street Journal.
The report, citing officials from the Centers for Medicare and Medicaid Services and the White House, indicates that an official announcement is expected late Monday.
The Medicare agency also plans to push for an elimination of billing practices that have historically been very profitable for the industry. An official from Medicare reportedly said the goal is to ensure payment accuracy and proper reimbursements.
UnitedHealth, Humana, CVS Shares Move Lower After Hours
Shares of UnitedHealth Group Inc (NYSE:UNH), Humana Inc (NYSE:HUM) CVS Health Corp (NYSE:CVS) are taking a beating in extended trading on Monday as analysts had been forecasting a rate increase of 4% to 6% next year.
The report states that a 0.09% increase in 2027 would be worth just $700 million total. For comparison, health insurers got a 5.06% increase this year.
On Monday at publication, UnitedHealth shares were down 8.82% at $322.09 in after-hours, while Humana shares were down 13.34% at $227.50 and CVS shares were down 11.03% at $74..62, per Benzinga Pro.
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