STAT+: Trump administration proposes tiny pay raise to 2027 Medicare Advantage plans
The Trump administration plans to increase payments to next year’s Medicare Advantage plans by less than 0.1% on average — far below what the industry had expected.
Several Wall Street analysts expected pay increases of 4%-6%, but a crucial measure of Medicare spending came in below consensus estimates. The stock prices of the nation’s largest Medicare Advantage insurers — UnitedHealth Group, Humana, and CVS Health — all fell by more than 9% in after-hours trading.
Trump’s Centers for Medicare and Medicaid Services, led by Mehmet Oz, also proposed to restrict further how insurers can code the illnesses of their Medicare Advantage enrollees.
Bob Herman
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