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The
U.S. Centers for Medicare & Medicaid Services (CMS) payments to
Medicare Advantage (MA) programs, which serve those aged 65 and
older, are expected to increase by 3.7% on average in 2025,
consistent with what was published in January.
Excluding some items, the rate implies a drop of 0.16%, some
analysts have estimated. The CMS typically raises the final
reimbursement from the advanced notice.
"With most anticipating some improvement in the effective growth
rate," the rates come as a disappointment for companies
operating in the Medicare Advantage market who are likely to see
continued margin pressure, Evercore ISI analysts said in a note.
The "no improvement represented our worst-case scenario," TD
Cowen analysts wrote in a note.
Leading the decline was Humana, slumping 8.8%, as its business
is focused on the Medicare Advantage market.
UnitedHealth fell 4%, while CVS Health tumbled 5%.
The closely watched proposal decides how much insurers can
charge for monthly premiums, plan benefits they offer and,
ultimately, their profits.
(Reporting by Medha Singh and Manas Mishra in Bengaluru; Editing
by Sriraj Kalluvila)
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