{"id":260861,"date":"2026-01-27T23:45:07","date_gmt":"2026-01-27T23:45:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/260861\/"},"modified":"2026-01-27T23:45:07","modified_gmt":"2026-01-27T23:45:07","slug":"health-insurance-stocks-plummet-on-2027-medicare-proposal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/260861\/","title":{"rendered":"Health-Insurance Stocks Plummet on 2027 Medicare Proposal"},"content":{"rendered":"

\"NYSE<\/p>\n

TIMOTHY A. CLARY \/ AFP via Getty Images <\/p>\n

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Health insurers saw shares plunge on Tuesday on the latest proposals for Medicare.
\n The Trump administration proposed holding Medicare Advantage payments roughly flat in 2027.
\n UnitedHealth CEO says the proposed payment rate will lead to “very meaningful benefit reductions.”<\/p>\n

Health-insurance<\/a> stocks plunged on Tuesday amid the latest updates from the White House on Medicare plan payments for next year.<\/p>\n

Major insurers saw their stocks tumble sharply after the Trump administration proposed holding Medicare payments roughly flat in 2027. The small-than-expected increase comes amid concerns about rising health costs<\/a>.<\/p>\n

Here were the big movers in Tuesday’s session:<\/p>\n

UnitedHealth Group released fourth-quarter earnings before Tuesday’s opening bell, with RBC analysts saying the earnings print and 2026 outlook were both “solid.” They chalked up the big slide in the shares to the latest insurance updates from the administration.<\/p>\n

During the earnings call, UnitedHealthcare CEO Tim Noel called the CMS proposal “disappointing,” saying if finalized, “it will mean very meaningful benefit reductions.”<\/p>\n

The Centers for Medicare & Medicaid Services proposed a net average year-over-year payment increase of 0.09% in 2027 for Medicare Advantage members. In comparison, Medicare Advantage payments in 2026 rose 5.06% from 2025.<\/p>\n

The proposed payment increase was well below Wall Street’s expectations, with RBC Capital Markets analysts expecting an “at least a mid-single digit increase.” The analysts noted that historically, the final payment rate is higher than the initial proposal.<\/p>\n

Dr. Mehmet Oz, CMS administrator, said the “proposed payment policies are about making sure Medicare Advantage works better for the people it serves,” while “protecting taxpayers from unnecessary spending that is not oriented towards addressing real health needs.”<\/p>\n

The CMS proposal also includes updates to the Medicare Advantage risk adjustment model, such as excluding diagnosis information not associated with a specific beneficiary encounter.<\/p>\n","protected":false},"excerpt":{"rendered":"TIMOTHY A. CLARY \/ AFP via Getty Images This story is available exclusively to Business Insider subscribers. Become…\n","protected":false},"author":2,"featured_media":260862,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[163,521,85,46],"class_list":{"0":"post-260861","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-health","9":"tag-healthcare","10":"tag-il","11":"tag-israel"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/260861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=260861"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/260861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/260862"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=260861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=260861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=260861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}