Meanwhile, Humana’s stock price fell more than 10%. The medical giant relies far more than its rivals on private Medicare plans, known as Medicare Advantage.
The announcement puts added pressure on insurers already grappling with high medical costs and uncertainty over claims processing following a cyberattack on UnitedHealth Group’s technology division. It also hurts the Medicare Advantage business, which has long been a driver of growth and profits for the insurance industry.
The Centers for Medicare and Medicaid Services announced late Monday that government payments for Medicare Advantage plans are expected to increase 3.7% from a year ago. It is in fact After removing certain assumptions, the decline was 0.16%. It’s built into that interest rate, insurers and analysts say.
This final rate is unchanged from the previous proposal in January. Typically, federal agencies increase their rates from their original proposals.
Carefully monitored rates determine how much insurance companies can charge for monthly premiums and benefits for the plans they offer, and ultimately, their profits.
Medicare Advantage is a privately operated health insurance plan contracted by Medicare. more than half According to health policy research firm KFF, 50% of Medicare beneficiaries enroll in these plans, drawn by lower monthly premiums and additional benefits not covered by traditional Medicare.
