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What is causing the drop in health insurance stocks HUM, UNH, and CI today?

Byeditor

Apr 2, 2024

Health insurance stocks are facing a decline after the Biden administration announced that Medicare Advantage rates will not be increased for 2025. This decision caught health insurance companies off guard, as the government typically raises rates compared to initial proposals. This is only the second time in the last decade that rates have not been increased, putting more financial strain on health insurance companies as they will now have to cover more costs. This comes at a time when medical prices are rising due to inflation and increased interest rates, along with patients utilizing their insurance more than anticipated. Discussions of a merger between major players in the industry have also fallen through due to concerns about the Federal Trade Commission blocking the combination.

Health insurance stocks are down in response to this news. Humana stock has dropped by 13.8%, UnitedHealth is falling by 6.1%, and Cigna is decreasing less than 1%. Investors interested in more stock market news can find additional updates on various companies like Ubisoft, Canoo, and Gritstone Bio by checking out related articles. This provides insight into the biggest stock market news for that particular day. As of the publication date, the writer did not hold any positions in the securities mentioned in the article.

By editor

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