In recent news, health insurance stocks are experiencing a decline following the Biden administration’s announcement that Medicare Advantage rates will remain unchanged for 2025. This decision has caught health insurance companies off guard, as the government typically increases rates compared to initial proposals. However, this is only the second time in the last decade that rates have not been increased, putting additional financial strain on these companies as they must now cover more costs.
This comes at a time when medical prices are rising due to inflation and increased interest rates, as well as patients utilizing their insurance more than expected. As a result, discussions of a merger between major players in the industry have fallen through due to concerns about the Federal Trade Commission blocking the combination.
Investors are taking note of these developments, with Humana stock dropping by 13.8%, UnitedHealth falling by 6.1%, and Cigna decreasing less than 1%. Those interested in more stock market news can find updates on various companies such as Ubisoft, Canoo, and Gritstone Bio by checking out related articles. The writer did not hold any positions in the securities mentioned in this article at the time of publication.
