Shares of U.S. health insurers fell Tuesday after the Biden administration didn’t boost payments for private Medicare plans as much as the insurance industry and investors had hoped.
Shares of CVS Health fell more than 8% on Tuesday, while UnitedHealth Group ‘s stock slid nearly 7%. Shares of Elevance Health dropped more than 3% and Centene ‘s stock fell 6%.
Meanwhile, Humana ‘s stock fell more than 10%. The health-care giant is far more dependent on those private Medicare plans, known as Medicare Advantage, than its rivals.
The announcement puts more pressure on insurers already grappling with high medical costs and uncertainty around claims processing after the cyberattack on UnitedHealth Group’s tech unit. It also deals a blow to Medicare Advantage businesses, which have long driven growth and profits for the insurance industry.
Source: www.cnbc.com
