Shares of U.S. health insurance companies fell on Tuesday after the Biden administration failed to take action Promote Payment private health insurance plan Just as the insurance industry and investors hoped.
shares CVS Health fell more than 8% on Tuesday, while UnitedHealth GroupThe company’s stock price fell nearly 7%.shares Highly healthy The decline exceeds 3% and hundredsThe company’s shares fell 6%.
at the same time, humanaThe company’s stock price fell more than 10%. The health care giant relies more than its rivals on private health insurance plans called Medicare Advantage.
The announcement adds to pressure on insurers, which are already grappling with high medical costs and uncertainty about claims processing, following a cyber attack on UnitedHealth Group’s technology unit. It’s also a blow to Medicare Advantage businesses, which have long driven growth and profits in the insurance industry.
The Centers for Medicare and Medicaid Services said late Monday that government payments for Medicare Advantage plans are expected to increase 3.7% annually.This is actually a Down 0.16% after excluding certain assumptions That ratio has been taken into account, according to insurers and analysts.
The final rate was unchanged from the earlier proposal in January. Typically, federal agencies increase that rate from the original proposal.
The closely watched rates determine how much monthly premiums insurance companies can charge and the plan benefits they offer, and ultimately their profits.
Medicare Advantage is a private health insurance plan contracted by Medicare. more than half According to health policy research firm KFF, 10% of Medicare beneficiaries have signed up for such plans, attracted by lower monthly premiums and additional benefits not covered by traditional Medicare.
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