The Biden administration’s decision to not increase Medicare Advantage rates for 2025 has put health insurance companies in a tough spot. This is the second time in a decade that rates have not been increased, putting more financial strain on these companies as they now have to cover more costs. This comes at a time when medical prices are rising due to inflation and increased interest rates, along with patients utilizing their insurance more than anticipated. Discussions of a merger between major players in the industry have also fallen through due to concerns about the Federal Trade Commission blocking the combination.
As a result, health insurance stocks are down. Humana stock has dropped by 13.8%, UnitedHealth is falling by 6.1%, and Cigna is decreasing less than 1%. Investors interested in more stock market news can find additional updates on various companies like Ubisoft, Canoo, and Gritstone Bio by checking out related articles. As of the publication date, the writer did not hold any positions in the securities mentioned in the article.
