The health insurance industry was hit hard on Tuesday after President Joe Biden’s administration announced that Medicare Advantage rates would not be raised through 2025. This decision came as a surprise to health insurance companies, who had been expecting the government to raise rates compared to initial proposals. Only once in the last decade has it failed to do so, and now companies will have to cover more costs, especially as rising inflation and interest rates drive up drug prices.

This news sent shockwaves through the stock market, with shares of Humana (NISE:HUM) falling 13.8%, shares of UnitedHealth (NISE:UNH) falling 6.1%, and shares of Cigna (NISE:CI) falling less than 1%. Investors looking for more stock news can keep up with the latest stories, such as Ubisoft’s (OTCMKTS:UBSFI) layoffs, Canoo’s (NASDAK:GOEV) expansion plans, and Gritstone Bio’s (NASDAK:GRTS) stock drop.

The increased use of insurance by patients led to discussion of a merger between the two major players in the industry, although the talks collapsed due to concerns about FTC intervention. The impact of this decision can be seen on the stock market, with health insurance stocks taking a hit as companies face increased costs and other challenges in the current economic environment.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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