What is causing the decline in health insurance stocks HUM, UNH, CI today?

On Tuesday, the health insurance industry took a hit as President Joe Biden’s administration announced that Medicare Advantage rates would not be increased for 2025. This decision caught health insurance companies off guard, as they had been expecting an increase in rates compared to initial proposals. Only once in the past decade has the government not raised rates, and now companies will have to cover more costs due to rising inflation and interest rates driving up medical prices.

The impact of this news was felt in the stock market, with Humana (NYSE:HUM) stock falling 13.8%, UnitedHealth (NYSE:UNH) stock decreasing by 6.1%, and Cigna (NYSE:CI) stock declining by less than 1%. Investors looking for more updates on the latest stories can keep track of Ubisoft (OTCMKTS:UBSFY) layoffs, Canoo (NASDAQ:GOEV) expansion plans, and Gritstone Bio (NASDAQ:GRTS) stock decline.

Overall, the decision not to increase Medicare Advantage rates for 2025 has sent shockwaves through the health insurance industry, leading to a downturn in health insurance stocks as companies face increased costs and other challenges in the current economic environment.

By Sophia Gonzalez

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