• Mon. Apr 15th, 2024

Healthcare Stocks under Pressure from Lower-Than-Expected Medicare Advantage Plan Payments for 2025

BySamantha Jones

Apr 2, 2024
Healthcare stocks decrease following disappointment in Medicare Advantage rates

On Tuesday, healthcare stocks are facing pressure due to lower-than-expected Medicare Advantage plan payments for 2025. According to TD Cowen Senior Equity Research Analyst, Gary Taylor, this is an annual political dance between the industry and Centers for Medicare & Medicaid Services (CMS).

When a proposed rule, like the 2025 Medicare Advantage (MA) proposed rule, is released, the industry typically lobbies for higher proposed rates. However, this time, CMS did not make any adjustments to the rates in the final notice.

Taylor describes the situation as a potential fallout that could lead to healthcare businesses reducing the benefits they offer to seniors next year. This could ultimately improve their margins and drive higher earnings growth in the industry.

To get more expert insights and stay updated on the latest market trends, you can watch the full episode of Market Domination for more information.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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