"Medicare Rate Surprise Sends Health and Insurance Stocks Tumbling"
Shares of leading health insurance managed care stocks, including Humana, CVS Health, and UnitedHealth Group, fell after the Centers for Medicare and Medicaid Services (CMS) approved a lower-than-expected 3.7% payment rate increase for 2025, disappointing investors who were hoping for a larger hike to keep pace with rising medical costs. The decision is expected to impact the financial health of provider organizations and could lead to continued pressure on health insurance stocks as medical costs and Medicare Advantage plan utilization rise.