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

The recent decision by the Biden administration not to increase payments for private Medicare plans as much as anticipated has caused shares of U.S. health insurers to plummet. This additional pressure is being felt by insurers who are already grappling with high medical costs and uncertainty following the ransomware attack on UnitedHealth Group’s tech unit. According to the Centers for Medicare and Medicaid Services, government payments to Medicare Advantage plans are only expected to rise by 3.7% year over year, adding yet another challenge for these companies.

As a result of this announcement, several health insurers have seen declines in their stock prices. 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 impact of this decision is particularly felt by 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.

This news has added yet another layer of uncertainty to an already challenging business environment for health insurers in the U.S.

By Samantha Johnson

As a content writer at newsnmio.com, I craft engaging and informative articles that aim to captivate readers and provide them with valuable insights. With a background in journalism and a passion for storytelling, I thoroughly enjoy delving into diverse topics, conducting research, and producing compelling content that resonates with our audience. From breaking news pieces to in-depth features, I strive to deliver content that is both accurate and engaging, constantly seeking to bring fresh perspectives to our readers. Collaborating with a talented team of editors and journalists, I am committed to maintaining the high standards of journalism upheld by our publication.

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