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Health insurance companies' stocks fell as regulators maintained the final rates for private Medicare Advantage plans, resulting in a 3.70% payment increase to MA plans and capping Medicare Part D out-of-pocket costs at $2,000 for CY 2025. Despite lobbying for an increase, the Biden administration stuck with slight cuts to 2025 Medicare Advantage payments, leading to a 0.16% average decrease. Insurers are facing pressure from rising medical costs and reduced government payments, causing stock declines and concerns about benefit reductions in 2025.
Facing higher costs and government pricing pressure, Medicare Advantage is set for its own shrinkflation moment. Via @WSJ https://t.co/NO31eOE3zy
The Medicare Advantage industry and its investors are declaring doomsday too prematurely in response to the government’s surprisingly modest increase in payments for 2025, @JonathanJLevin says https://t.co/x4EoNDljh9 via @opinion
The Medicare Advantage industry and its investors are declaring doomsday too prematurely in response to the government’s surprisingly modest increase in payments for 2025, @JonathanJLevin says https://t.co/NrP1OsXhHo