UnitedHealth (UNH) and Humana (HUM) tumbled overnight while other health insurers such as CVS Health (CVS) and Cigna (CI) retreated after the Biden Administration announced that final Medicare Advantage rates in 2025 won’t change from initial plans in January.

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The Centers for Medicare and Medicaid Services announced late Monday that private Medicare Advantage rates will increase an average 3.7% in 2025. That’s what CMS proposed in January. Typically the regulator raises rates with the final plan.

UnitedHealth, Humana Biggest Players

UnitedHealth and Humana are the largest Medicare Advantage players, with Humana especially exposed as Medicare makes up a big share of its total revenue. Humana stock plunged 8.9% in premarket trading, threatening to hit a four-year low. UnitedHealth stock sank 3.9%.

CVS Health, the drugstore and insurance giant, also is a big Medicare Advantage player. CVS stock retreated 5.5% overnight.

Cigna stock dipped 1.3% late. Cigna has less exposure to the Medicare Advantage market.

UnitedHealth is one of the largest Medicare Advantage players, but smaller players such as Centene (CNC) and Molina Healthcare (MOH), known primarily as Medicaid insurers, took a hit too. Centene and Molina declined more than 2%.

Elevance Health (ELV) slumped 3.95% after hours.ELV stock, just below a recent 52-week high, is set to fall below its 50-day line.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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