Trump administration boosting Medicare Advantage plans by 5.06%, causing mixed effects on insurance companies.

From Yahoo Finance: 2025-04-21 06:19:00

1. Insurance companies are optimistic about Trump administration’s policies, with a 5.06% benchmark increase to Medicare Advantage plans, amounting to $25 billion for Humana and UnitedHealthcare.

2. Program costs have caused margins to fall in the insurance sector. Despite increased funding, companies like Humana and UnitedHealthcare saw stock drops in Q1 earnings.

3. Medicare Advantage program critics question use of taxpayer dollars to pay private insurers. Federal spending influences plan benefits across participating private insurers.

4. Biden administration’s lower proposed increase for 2026 was seen as a funding cut. Stricter billing rules by Trump administration led to civil fraud investigation into UnitedHealthcare.

5. Analysts doubt Trump’s policies will benefit average Americans, expecting insurers to focus on profit margins rather than increasing benefits or care availability.

6. Increased funding may attract more Medicare-eligible seniors to join the program, with $25 billion potentially improving profits or benefits for seniors in 2025 and 2026.



Read more at Yahoo Finance: Trump’s boost to insurers could cost Americans on Medicare Advantage plan a whole lot more