UnitedHealth (UNH) saw a 20% drop in shares as annual revenue is set to decline for the first time in over 30 years. Q4 financials exceeded expectations but forecasted a 2% revenue decrease to $439 billion for 2026. Stock is down over 50% from its high.

CMS closed a revenue-boosting loophole for UnitedHealth, leading to structural headwinds. The federal agency will no longer reimburse for unnecessary diagnoses and announced a 0% increase in Medicare Advantage plan payments. These changes pose significant challenges for the insurer’s insurance unit.

UnitedHealth’s medical loss ratio rose by 3% in Q4, indicating high healthcare costs. The stock fell below key moving averages on Tuesday, suggesting bearish sentiment. Historical trends show an average loss of over 4% in February over the past five years, making UNH less attractive.

Analysts previously rated UNH shares as a “Moderate Buy,” but a membership decline exceeding 3 million in 2026 may lead to downward revisions. With new CMS policies and technical indicators signaling caution, investors are advised to stay away from UnitedHealth after its Q4 earnings report.

Read more at Yahoo Finance: As UnitedHealth Stock Plunges Below Key Support Levels, Should You Buy the Dip in UNH Stock?