Insurance stocks rally on report of bigger Medicare payouts
Health insurance stocks rallied after-hours on Monday after The Wall Street Journal reported that the Trump administration will significantly raise the payout rates for Medicare Advantage insurers next year.
Through Medicare Advantage, private insurers administer government health benefits and get paid back by the federal government. According to the Journal, payment rates will increase to 5.06% next year from 2.23% proposed by the Biden administration.
UnitedHealth, Humana, and Cigna each rose after-hours on the news.
The decision to pay private insurers more comes as the Trump administration has insisted that it’s trying to rein in on spending by laying off hoards of federal workers and canceling contracts.
UnitedHealth, Humana, and Cigna each rose after-hours on the news.
The decision to pay private insurers more comes as the Trump administration has insisted that it’s trying to rein in on spending by laying off hoards of federal workers and canceling contracts.
