×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: health insurance | stocks | medicare

Health Insurers Slide on Final Medicare Advantage Rate

Health Insurers Slide on Final Medicare Advantage Rate
(AP)

Tuesday, 02 April 2024 07:18 AM EDT

Shares of U.S. health insurers dropped between 4% and 9% premarket Tuesday after reimbursement rates to providers of Medicare Advantage health plans were unchanged from the initial proposal, raising worries about a squeeze on margins next year.

The U.S. Centers for Medicare & Medicaid Services (CMS) payments to Medicare Advantage (MA) programs, which serve those aged 65 and older, are expected to increase by 3.7% on average in 2025, consistent with what was published in January.

Excluding some items, the rate implies a drop of 0.16%, some analysts have estimated. The CMS typically raises the final reimbursement from the advanced notice.

"With most anticipating some improvement in the effective growth rate," the rates come as a disappointment for companies operating in the Medicare Advantage market who are likely to see continued margin pressure, Evercore ISI analysts said in a note.

The "no improvement represented our worst-case scenario," TD Cowen analysts wrote in a note.

Leading the decline was Humana, slumping 8.8%, as its business is focused on the Medicare Advantage market.

UnitedHealth fell 4%, while CVS Health tumbled 5%.

The closely watched proposal decides how much insurers can charge for monthly premiums, plan benefits they offer and, ultimately, their profits.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Shares of U.S. health insurers dropped between 4% and 9% premarket Tuesday after reimbursement rates to providers of Medicare Advantage health plans were unchanged from the initial proposal, raising worries about a squeeze on margins next year.The U.S. Centers for Medicare...
health insurance, stocks, medicare
200
2024-18-02
Tuesday, 02 April 2024 07:18 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved