Medicare Advantage 2025 payments will dip, Biden administration says

Medicare Advantage insurers requested higher payment rates from the Biden administration, claiming that the government’s data on healthcare usage didn’t match their own. Despite lobbying efforts, the administration decided to stick with their proposed rates, causing a slight decrease in payment rates for insurers in 2025. This decision led to a drop in stock prices for major Medicare Advantage insurers like UnitedHealth, Humana, CVS Health, and Elevance Health. The industry, which relies on Medicare Advantage for profits, was disappointed by the outcome.

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