Humana (NYSE:HUM) led health insurer stocks lower in after-hours trading Monday following reports that Medicare Advantage plans will only be getting a 3.7% payment increase in 2025.
Humana shares dropped 9% in post-market action, while CVS Health (NYSE:CVS) shares fell 6% and UnitedHealth Group (NYSE:UNH) shares slid 5%. Also in retreat were shares of Elevance Health (NYSE:ELV) and Centene (NYSE:CNC), down 4% and 3%, respectively.
The 3.7% average payment increase is the same that had been proposed by the US government in January. Health insurers had been hoping the final rate would be higher, according to Bloomberg.
