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Humana (NYSE:HUM) led health insurer stocks lower in after-hours trading Monday following reports that Medicare Advantage plans will only be getting a 3.7% payment increase in 2025.
Humana shares dropped 9% in post-market action, while CVS Health (NYSE:CVS) shares fell 6% and UnitedHealth Group (NYSE:UNH) shares slid 5%. Also in retreat were shares of Elevance Health (NYSE:ELV) and Centene (NYSE:CNC), down 4% and 3%, respectively.
The 3.7% average payment increase is the same that had been proposed by the US government in January. Health insurers had been hoping the final rate would be higher, according to Bloomberg.
More on Centene, CVS Health, etc.
- Centene Corporation Still An Opportunity With An A-Grade Valuation
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- Elevance: A Healthy Dose Of Dividend Growth
- CVS, Elevance Health to cover Novo Nordisk’s Wegovy: WSJ
- UnitedHealth ups post-hack relief funding to $3.3B