Humana and UnitedHealth tumble after Trump administration proposes nearly flat Medicare Advantage rates
CMS proposed a 0.09% net average payment increase for Medicare Advantage plans in 2027, well below analyst expectations, triggering sharp drops in major insurer stocks.
- CMS proposed a 0.09% net average payment increase for Medicare Advantage plans in 2027, versus analyst expectations of 4% to 6%.
- Humana fell more than 20% and UnitedHealth lost about 19%, while CVS dropped 10%, Elevance roughly 11% and Centene over 7%, and UnitedHealth also issued weaker-than-expected 2026 revenue guidance.
- If finalized, the proposed rates would increase payments to Medicare Advantage plans by more than $700 million in 2027.
- CMS said the rules would improve payment accuracy, modernize risk adjustment and curb a common billing practice to limit unnecessary spending.
- More than half of Medicare beneficiaries are enrolled in Medicare Advantage plans and CMS typically finalizes rates in early April.