Posted 4/2/2024, 11:59:52 PM
Medicare Advantage Plans Get Lower Than Expected 3.7% Payment Bump in 2025, Insurers Express Concern
- CMS approved a 3.7% Medicare Advantage payment rate increase for 2025, lower than expected
- Insurers argue rate hikes are not keeping pace with rising healthcare costs
- Humana, CVS Health, and UnitedHealth Group stocks fell 13.4%, 7.2%, and 6.4% respectively in response
- The rate increase equates to a $16B year-over-year increase in payments to Medicare Advantage plans
- Over 33 million Medicare beneficiaries receive coverage through a Medicare Advantage plan
