From CNBC: 2024-04-02 11:19:11

Shares of U.S. health insurers dropped as government payments for private Medicare plans fell short of expectations. CVS Health fell over 8%, UnitedHealth Group nearly 7%, Elevance Health over 3%, Centene 6%, and Humana over 10%. This announcement strains insurers facing high costs and uncertainty after UnitedHealth Group’s cyberattack.

The Centers for Medicare and Medicaid Services projected a 3.7% increase in payments to Medicare Advantage plans, representing a 0.16% decline. The rate remains unchanged from the January proposal, impacting how insurers set premiums and benefits. Medicare Advantage, covering more than half of beneficiaries, offers extra benefits and lower premiums compared to traditional Medicare.



Read more at CNBC: Health insurer stocks slide as Medicare Advantage rates disappoint