Impact of Final Medicare Advantage Rate Hike on US Health Insurers

Tuesday, 2 April 2024, 09:50

The U.S. Centers for Medicare & Medicaid Services announced a 3.7% increase in payments to Medicare Advantage programs for 2025, leading to concerns about margin pressure for companies operating in this market. Analysts expect the rate hike to be disappointing for insurers, with Humana experiencing an 8.8% decline due to its focus on Medicare Advantage.

https://store.livarava.com/2141b59b-f0df-11ee-8932-87cc5c87fb08.jpg — Impact of Final Medicare Advantage Rate Hike on US Health Insurers

US health insurers brace for impact

The U.S. Centers for Medicare & Medicaid Services (CMS) revealed a 3.7% increase in payments to Medicare Advantage (MA) programs for 2025, posing challenges for companies serving the elderly population.

Margin pressure looms

Evercore ISI analysts expressed concerns about continued margin pressure on insurers in the Medicare Advantage market following the rate hike announcement.

Humana takes a hit

Humana experienced an 8.8% decline in response to the news, as the company is heavily reliant on the Medicare Advantage sector.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.