Key Takeaways Proposed 0.09% Medicare Advantage rate hike for 2027 triggered sharp sell-offs in major U.S. health insurers.Humana slid 13% as flat reimbursement rates threaten margins amid rising administrative costs.Diversified ETFs like VHT balance insurer exposure with strength in pharma and biotech leaders.The Trump administration has sent shockwaves through the healthcare sector by proposing nearly flat reimbursement rates for Medicare Advantage (MA) plans for 2027. Announced on Jan. 26, 2026, the prop ...

The selloff in health insurers that provide Medicare Advantage plans wiped out more than $90 billion in stock-market value as investors fled from the once-defensive sector https://t.co/8soOxmvhoT ...

We came across a bullish thesis on UnitedHealth Group Incorporated on Value investing subreddit by ashm1987. In this article, we will summarize the bulls’ thesis on UNH. UnitedHealth Group Incorporated's share was trading at $329.77 as of November 28th. UNH’s trailing and forward P/E were 17.18 and 18.62 respectively according to Yahoo Finance. 15 Fastest Aging Countries in the World racorn/Shutterstock.com UnitedHealth Group Incorporated operates as a health care company in the United States and intern ...

Industry Overview - The healthcare industry, particularly companies like CVS Health, is facing significant challenges due to rising medical costs, increased utilization rates, regulatory pressures, and budget cuts [1] Company Insights - CVS Health and its peers are struggling to find stability in a turbulent environment marked by various financial pressures [1] - The investment strategy focuses on identifying companies with strong qualitative attributes, purchasing them at favorable prices based on fundamentals, and maintaining long-term holdings [1]

Market Valuation & Investment Opportunity - Health insurers are largely trading at six times their estimated 2028 EPS, except for UnitedHealth, which is trading closer to ten times, suggesting a potential buying opportunity given the perceived undervaluation [1][2] - The market has priced in the problems faced by these businesses, such as mispricing Medicare Advantage and healthcare exchanges, into their valuations [2] Company-Specific Performance - CVS has shown improvement with two consecutive quarters of beating numbers in its core insurance segment and anticipates tailwinds next year [3] - Cigna is performing inline, and Alignment Healthcare, specializing in Medicare Advantage, is also doing well; Humana is meeting its targets for the year [3] - UnitedHealth is experiencing widespread problems, particularly in Medicaid and exchange fundamentals, while Centene and Molina have also faced challenges in these segments [4] Timing of Challenges - CVS faced significant challenges in 2024, while UnitedHealth's problems emerged in 2025, indicating varying timelines for when these companies encountered difficulties [5]

Oscar Health cut its outlook and missed estimates, the latest health insurer to be rocked by trouble in Affordable Care Act marketplaces https://t.co/hkmMPgQ3oG ...

Government Funding & Policy - US government funding for health insurers is reversing more abruptly than expected [1] - This reversal casts doubt on strategies that have driven profit growth for years [1] Industry Impact - The changing funding landscape impacts the health insurance industry's strategies [1]

Core Viewpoint - Health insurers, particularly Cigna Group, faced significant stock price declines due to government actions and remarks from President Trump regarding pharmacy benefit managers (PBMs) and drug pricing reforms [1][2][4]. Group 1: Government Actions and Impact - President Trump signed an executive order targeting PBMs, criticizing their role in negotiating drug prices and mandating the pharmaceutical industry to lower drug prices within 30 days [2][4]. - Legislation proposed by the House of Representatives aims to alter PBM compensation structures, with a strong likelihood of passage given Republican control of both the House and Senate [5]. Group 2: Market Reaction - Cigna's stock price dropped by over 5% on a day when the S&P 500 index rose by more than 3.2%, indicating a negative market reaction specifically towards health insurers [1]. - Other healthcare companies with PBMs, such as CVS Healthcare and UnitedHealth Group, also experienced declines in stock prices [6]. Group 3: PBMs Under Scrutiny - PBMs are facing increased criticism for contributing to rising drug prices, making them targets for reform efforts [7]. - Despite potential challenges for Express Scripts, Cigna's overall business is considered robust enough to withstand the impact of a weakened PBM segment [8].