Medicare Advantage Rates Unchanged, Health Insurance Stocks Decline and Mergers Fall Through

In recent news, health insurance stocks are facing a decline after the Biden administration announced that Medicare Advantage rates will not be increased for 2025. This decision has put more financial strain on health insurance companies, as they will now have to cover more costs without an increase in rates. The government typically raises rates compared to initial proposals, but this is only the second time in the last decade that rates have not been increased.

This news comes at a time when medical prices are also 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.

As a result of 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.