Medicare Advantage insurers' stocks rallied upon news of Donald Trump's impending return to the White House, Bloomberg reported Nov. 6.
Analysts expect a second Trump administration to boost rates for MA plans, Bloomberg reported.
Under the Biden administration, CMS has implemented risk-adjustment payment changes to the program insurers say amounts to a cut in funding. MA insurers have faced headwinds from the lowered rates and rising medical spending.
Project 2025, a package of sweeping federal policy proposals from the Heritage Foundation, calls for Medicare Advantage to become the default option for Medicare enrollees. Mr. Trump has publicly distanced himself from the proposals.
When markets opened Nov. 6, UnitedHealth Group shares rose 6.6%, and Humana gained 12%, Bloomberg reported.
CVS Health, which reported Q3 earnings and named new senior executives on Nov. 6, gained 14%, its largest intraday gain in 24 years, the outlet reported.
The Trump administration may also be more friendly to health industry mergers, according to Bloomberg. The outlet previously reported a potential merger between Cigna and Humana would likely move ahead only if Mr. Trump was elected.
Cigna CEO David Cordani appeared to dismiss the rumored merger on an Oct. 31 earnings call, saying the company was focused on pursuing stock buybacks.
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