Health insurance stocks are falling on Tuesday after President Joe Biden’s administration announced that it won’t increase Medicare Advantage rates for 2025.
This comes as a surprise to health insurance companies, as the government typically increases its rates compared to its initial proposals. In fact, only once in the last decade has it not done so.
That’s bad news for health insurance stocks as it means the companies behind them will be covering more costs. This comes at a time when increased inflation and interest rates are causing medical prices to rise as well.
These increasing costs come alongside patients making more use of their insurance than expected. This has even led to talks of a merger between two major players in the space. However, those discussions broke down over concerns about the Federal Trade Commission blocking the combination.
Let’s check out how this news is affecting health insurance stocks below!
Health Insurance Stocks Down Today
- Humana (NYSE:HUM) stock is down 13.8% as of Tuesday morning.
- UnitedHealth (NYSE:UNH) stock is falling 6.1% as of this writing.
- Cigna (NYSE:CI) stock is decreasing less than 1% today alongside the news.
Investors who are seeking out even more of the most recent stock market stories are going to want to stick around!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
