Humana (HUM), UnitedHealth Group (UNH), and several other insurers are down in after-hours trading Monday after the Trump administration proposed nearly flat reimbursement rates for Medicare Advantage payers in 2027.
The average payment increase is slated at 0.09%, or ~$700M overall. Street analysts were anticipating a 4%-6% rise.
However, the Centers for Medicare & Medicaid Services noted: “When considering estimated risk score trend in MA driven by coding practices and population changes, the expected average change in payments will be 2.54%.
CVS Health (CVS), Molina (MOH), and Elevance Health (ELV) are other insurers on the decline in after-hours trading.
