Health Insurer Stocks Slide After Trump Administration Proposal Keeps Medicare Payment Rates Nearly Unchanged

Core Viewpoint - Shares of major health insurance companies experienced significant declines in premarket trading following a proposal from the Trump administration to maintain flat Medicare payment rates in 2027, which did not meet Wall Street expectations [1][3]. Group 1: Stock Performance - UnitedHealth Group's shares fell nearly 9% to $317.51 [2] - CVS Health's stock price dropped 9.38% to $76 [2] - Centene's stock price decreased to $44.26, down 4.36% from the previous close [2] - Elevance Health's shares declined nearly 7% to $350.93 [2] - Humana's shares were the most affected, falling to $229, down more than 13.1% from Monday's closing [2] Group 2: Medicare Payment Rate Proposal - The Centers for Medicare & Medicaid Services proposed a 0.09% increase in Medicare Advantage payment rates for 2027, significantly lower than analysts' expectations of a 4-6% increase [3] - The previous year's increase was 5.06%, which exceeded forecasts [3] - The lower proposed increase follows President Trump's criticism of insurance companies, indicating a desire for them to earn less [3] Group 3: Official Statement - CMS Administrator Dr. Mehmet Oz stated that the proposed payment policies aim to ensure that Medicare Advantage functions better for the beneficiaries it serves [4]