04/17/2025
UnitedHealth's guidance cut may mean trouble for some insurers
Highlight from article are following
"Higher medical costs have dogged the entire insurance industry over the past year as more seniors return to hospitals to undergo procedures they had delayed during the Covid-19 pandemic, such as joint and hip replacements. But the issue had previously not been as significant at UnitedHealthcare.
Barclays analyst Andrew Mok said UnitedHealth’s problems may be less of an issue for companies that made “significant” exits from some Medicare Advantage markets, including Humana and CVS, according to a note Thursday. Many insurers last year exited unprofitable Medicare Advantage markets due to higher medical costs and lower reimbursement rates from the federal government."
Some good news from the article is in following quote
"If nothing else, insurers are set to get a boost next year. The Trump administration in April said it would substantially increase reimbursement rates for Medicare Advantage insurers, hiking an earlier proposal from the Biden administration. "
Credit: CNBC
The warning sign from a health-care giant seen as the insurance industry's bellwether may mean trouble for companies with Medicare Advantage plans.
