Healthcare stocks decrease following disappointment in Medicare Advantage rates

Centers for Medicare & Medicaid Services (CMS) have released their 2025 Medicare Advantage (MA) proposed rule, but the healthcare industry is facing pressure. TD Cowen Senior Equity Research Analyst, Gary Taylor, explains the implications of this decision on an interview with Yahoo Finance Live.

According to Taylor, the situation is an “annual political dance” between the industry and CMS. When a proposed rule is released, the industry typically lobbies for higher proposed rates. However, this time, CMS did not make any adjustments to the rates in the final notice.

The potential fallout from this decision could lead to healthcare businesses reducing the benefits they offer to seniors next year. This could ultimately improve their margins and drive higher earnings growth in the industry.

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By Samantha Johnson

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