The Steady Drip: Health Insurance Stocks Soar on Boost to Medicare Reimbursement Rates (Connecting the Dots: America's Health Insurance Plans, The Center for American Progress & Soros Funding, All Networking)

Health Insurance Stocks Soar on Boost to Medicare Reimbursement Rates (Connecting the Dots: America's Health Insurance Plans, The Center for American Progress & Soros Funding, All Networking)

Newsmax.com

Tuesday, 08 April 2025 07:38 AM EDT

(Kristoffer Tripplaar/AP)

https://www.newsmax.com/finance/streettalk/health-insurance-stocks/2025/04/08/id/1206059/

Shares of U.S. health insurers jumped on Tuesday after a bigger-than-expected increase in the government's reimbursement rates for Medicare Advantage plans in 2026 signaled some relief for a sector burdened with steep medical costs.

Shares of Medicare-focused insurer Humana led gains with a nearly 15% jump in premarket trading, while other health insurers including UnitedHealth Group, Centene and CVS Health advanced between 5% and 9%.

The 5.06% average increase, roughly double of what was proposed by the government in January, could help profit margins in the sector after a post-COVID surge in demand for medical procedures drove up costs.

The "best-case scenario" rates, coupled with rising tariff risk, make health insurance stocks a strong relative safe haven, Baird Research analysts said in a note to clients.

Some health insurance stocks have performed well despite a recent market rout triggered by escalating worries over a trade war. Centene and Molina Healthcare notched gains last week, when broader markets plunged after President Donald Trump's tariff announcement.

The rate the U.S. government pays to private health insurers to manage Medicare for people aged 65 and older or with disabilities influences the monthly premiums these companies charge, the plan benefits they offer and, ultimately, their profits.

The Centers for Medicare & Medicaid Services had earlier proposed a 2.2% increase in 2026 payments. Last year, the government announced a 0.2% decline in the reimbursement rates for 2025.

The agency said the rate change mainly accounts for additional data on rising costs for insurers, including payment data through the fourth quarter of 2024.

Health insurance stocks had a rough 2024 with most companies ending the year in the red due to low government payments, high medical costs and public backlash against the sector after the murder of a UnitedHealth executive.

Connecting the Dots:

Center for American Progress was a funder for America's Health Insurance Plans and the CVS Caremark Corporation.

Open Society Foundations was a funder for the Center for American Progress.

George Soros is the founder & chairman for the Open Society Foundations, was the chairman for the Foundation to Promote Open Society and a supporter for the Center for American Progress.

Foundation to Promote Open Society was a funder for the Center for American Progress.

Center for American Progress (think tank) was a funder for America's Health Insurance Plans.

Scott Armstrong is a director at the America's Health Insurance Plans, a member of the Medicare Payment Advisory Commission and the president & CEO for the Group Health Cooperative.

Michael B. McCallister is a director at the America's Health Insurance Plans and the chairman for Humana Inc.

J. Mario Molina is a director at the America's Health Insurance Plans and the chairman & president & CEO for the Molina Healthcare Inc.

Jeannine M. Rivet was a director at the America's Health Insurance Plans and is the EVP for the UnitedHealth Group Inc.

Gail K. Boudreaux is a director at the America's Health Insurance Plans and the EVP for the UnitedHealth Group Inc.

Lewis G. Sandy was a director at the America's Health Insurance Plans and is the SVP for the UnitedHealth Group Inc.

Tom Daschle was an adviser for the UnitedHealth Group Inc., the nominee for health and human services secretary for the Barack Obama administration and a director at the Center for American Progress (think tank).

Open Society Foundations was a funder for the Center for American Progress (think tank).

Foundation to Promote Open Society was a funder for the Center for American Progress (think tank).

Center for American Progress was a funder for America's Health Insurance Plans and the CVS Caremark Corporation.
Richard A. Barasch is a director at the America's Health Insurance Plans and the chairman & president & CEO for the Universal American Corporation.
Mark T. Bertolini is a director at the America's Health Insurance Plans and the chairman & president & CEO for Aetna Inc.

Bruce G. Bodaken is a director at the America's Health Insurance Plans and was the chairman & president & CEO for the Blue Shield of California.
Mary K. Brainerd is a director at the America's Health Insurance Plans and the president & CEO for HealthPartners Inc.

Angela F. Braly is a director at the America's Health Insurance Plans and was the president & CEO for Blue Cross and Blue Shield of Missouri.

William M. Cameron is a director at the America's Health Insurance Plans and the chairman & CEO for American Fidelity Assurance.

James G. Carlson is a director at the America's Health Insurance Plans and was the chairman & president & CEO for the Amerigroup Corporation.

David M. Cordani is a director at the America's Health Insurance Plans and the president & CEO for the CIGNA Corporation.

Michael W. Cropp is a director at the America's Health Insurance Plans and the president & CEO for Independent Health.

Michael M. Dudley is a director at the America's Health Insurance Plans and the president for Sentara Health Plans Inc.

Mark B. Ganz is a director at the America's Health Insurance Plans and the president & CEO for Cambia Health Solutions, Inc.

Jay M. Gellert is a director at the America's Health Insurance Plans and the president & CEO for Health Net, Inc.

Vicky B. Gregg is a director at the America's Health Insurance Plans and the president & CEO for the BlueCross BlueShield of Tennessee.

Patricia A. Hemingway Hall is a director at the America's Health Insurance Plans and the president & CEO for the Health Care Service Corporation.

George C. Halvorson is a director at the America's Health Insurance Plans and the chairman for Kaiser Permanente.

Daniel J. Hilferty III is a director at the America's Health Insurance Plans and the president & CEO for Independence Blue Cross.

Daniel J. Houston is a director at the America's Health Insurance Plans and was a director at Catalyst Health Solutions.

Kevin P. McCarthy is a director at the America's Health Insurance Plans and the EVP for the Unum Group.
Daniel P. Neary is a director at the America's Health Insurance Plans and the chairman & CEO for Mutual of Omaha.

Robert A. Reed is a director at the America's Health Insurance Plans and the president & CEO for the Physicians Mutual Insurance Company.

James Roosevelt Jr. is a director at the America's Health Insurance Plans and the president & CEO for the Tufts Health Plan.

Eric H. Schultz is a director at the America's Health Insurance Plans and the president & CEO for the Harvard Pilgrim Health Care.

Charles D. Baker Jr. was a director at the America's Health Insurance Plans and is the president & CEO for the Harvard Pilgrim Health Care.

Anthony L. Watson is a director at the America's Health Insurance Plans and the chairman & CEO for the HIP Health Plan of New York.

Debbie J. Ahl was a director at the America's Health Insurance Plans and is the president & CEO for the Sterling Life Insurance Company.

K. Rone Baldwin was a director at the America's Health Insurance Plans and is the EVP & COO for the Guardian Life Insurance Company of America.

Christy W. Bell was a director at the America's Health Insurance Plans and is the EVP for the Horizon Blue Cross Blue Shield of New Jersey.

Frank J. Branchini was a director at the America's Health Insurance Plans, is the president & COO for Emblem Health and the CEO for Group Health Inc.

Benjamin M. Cutler was a director at the America's Health Insurance Plans and is the chairman & CEO for USHEALTH Group Inc.

Joseph A. Frick was a director at the America's Health Insurance Plans and is the vice chairman for Independence Blue Cross.

H. Edward Hanway was a director at the America's Health Insurance Plans and the chairman & CEO & president for the CIGNA Corporation.

Robert I. Lufrano was a director at the America's Health Insurance Plans and the CEO for Blue Cross and Blue Shield of Florida.

Frederick J. Manning was a director at the America's Health Insurance Plans and is the chairman & CEO for the Celtic Insurance Company.

David M. McDonough was a director at the America's Health Insurance Plans and is the president & CEO for the Trustmark Insurance Company.

Adrienne Morrell was a lobbyist at the America's Health Insurance Plans and is a lobbyist for Health Net, Inc.

Ronald A. Williams was a director at the America's Health Insurance Plans and the chairman for the Emergency Medical Services Corp.

Center for American Progress was a funder for America's Health Insurance Plans and the CVS Caremark Corporation.

Open Society Foundations was a funder for the Center for American Progress.

Foundation to Promote Open Society was a funder for the Center for American Progress and the Brookings Institution (think tank).

Akin, Gump, Strauss, Hauer & Feld, LLP was the lobby firm for the Center for American Progress (think tank), the America's Health Insurance Plans and Johnson & Johnson (Vaccine Manufacturer for the China Virus).

Vernon E. Jordan Jr. is a senior counsel for Akin, Gump, Strauss, Hauer & Feld,

an honorary trustee at the Brookings Institution (think tank) and married to Ann Dibble Jordan.
Ann Dibble Jordan is an honorary trustee at the Brookings Institution (think tank), married to Vernon E. Jordan Jr. and was a director at Johnson & Johnson (Vaccine Manufacturer for the China Virus).

Charles O. Prince III was a trustee at the Brookings Institution (think tank) and is a director at Johnson & Johnson (Vaccine Manufacturer for the China Virus).

Mark B. McClellan is a director at Johnson & Johnson (Vaccine Manufacturer for the China Virus), was a commissioner for the U.S. Food and Drug Administration (FDA) and a senior fellow at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.
Suzanne Nora Johnson is a trustee at the Brookings Institution (think tank) and a director at Pfizer Inc. (Vaccine Manufacturer for the China Virus).

Amy W. Schulman is a trustee at the Brookings Institution (think tank) and the EVP & general counsel for Pfizer Inc. (Vaccine Manufacturer for the China Virus).

Sidley Austin LLP was a lobby firm for Pfizer Inc. (Vaccine Manufacturer for the China Virus).

Michelle Obama was a lawyer at Sidley Austin LLP.

Barack Obama was an intern at Sidley Austin LLP, the president for the Barack Obama Administration and Obamacare is his signature policy initiative.

Obamacare is Barack Obama’s signature policy initiative.

CGI Group Inc. was the Obamacare contractor that developed Healthcare.gov web site.

Donna S. Morea was the EVP for the CGI Group Inc. and a trustee at the Committee for Economic Development.

Foundation to Promote Open Society was a funder for the Committee for Economic Development and the Center for American Progress.

George Soros was the chairman for the Foundation to Promote Open Society, a supporter for the Center for American Progress and is the founder & chairman for the Open Society Foundations.

Open Society Foundations was a funder for the Center for American Progress.

Center for American Progress was a funder for America's Health Insurance Plans and the CVS Caremark Corporation.
Apple Inc. was a funder for the Center for American Progress.

AT&T Inc. was a funder for the Center for American Progress.

Bank of America Corp. was a funder for the Center for American Progress.

BMW of North America LLC was a funder for the Center for American Progress.

Citigroup Inc. was a funder for the Center for American Progress.

Coca-Cola Company was a funder for the Center for American Progress.

Facebook was a funder for the Center for American Progress.

General Electric Company was a funder for the Center for American Progress.

Goldman Sachs Group Inc. (Bailout Company) was a funder for the Center for American Progress.

Motion Picture Association of America was a funder for the Center for American Progress.

PepsiCo, Inc. was a funder for the Center for American Progress.

PG&E Corporation was a funder for the Center for American Progress.

Samsung Electronics Co. was a funder for the Center for American Progress.

Time Warner Inc. was a funder for the Center for American Progress.

T-Mobile USA, Inc. was a funder for the Center for American Progress.

Toyota Motor North America was a funder for the Center for American Progress.

Visa Inc. was a funder for the Center for American Progress.

Wal-Mart Stores Inc. was a funder for the Center for American Progress.

Wells Fargo & Co. was a funder for the Center for American Progress.

Carol M. Browner is a director, senior fellow at the Center for American Progress, and was the energy czar for the Barack Obama Administration.

Tom Daschle is a director at the Center for American Progress, was the nominee for health and human services secretary for the Barack Obama Administration.

Ezekiel Emanuel is a senior fellow at the Center for American Progress and was the health care policy adviser for the Barack Obama Administration.

Lawrence H. Summers is a distinguished fellow at the Center for American Progress and was the National Economic Council chairman for the Barack Obama Administration.

Cassandra Q. Butts was the SVP for the Center for American Progress and the deputy White House counsel for the Barack Obama Administration.

Philip J. Crowley was the director of homeland security at the Center for American Progress and the assistant secretary of state for the Barack Obama Administration.

Derek Douglas was an associate director of economic policy at the Center for American Progress and a special assistant for urban affairs for the Barack Obama Administration.

Bradley J. Kiley was a VP for the Center for American Progress, and the director of management and administration for the Barack Obama Administration.

Karen Kornbluh was a visiting scholar at the Center for American Progress and a policy director for Barack Obama.

Jeanne Lambrew was a senior fellow at the Center for American Progress and is the deputy assistant to the president for health policy for the Barack Obama Administration.

Denis McDonough was a senior fellow at the Center for American Progress and is the chief of staff; former deputy national security adviser for the Barack Obama Administration.

Esther M. Olavarria was the director of immigration policy at the Center for American Progress and is the deputy assistant secretary at the U.S. Department of Homeland Security for the Barack Obama Administration.

Dan Restrepo was the Americas Project director at the Center for American Progress and a special assistant to the president for the Barack Obama Administration.

Gene B. Sperling was a senior fellow at the Center for American Progress and is the assistant to the president for economic policy for the Barack Obama Administration.

Todd Stern was a senior fellow at the Center for American Progress and is the special envoy for climate change at the U.S. Department of State for the Barack Obama Administration.

Melody C. Barnes was the EVP for the Center for American Progress, the domestic policy council, director for the Barack Obama Administration and is Barack Obama’s golf partner.

Jose H. Villarreal is a director at the Center for American Progress and a senior adviser at the Akin, Gump, Strauss, Hauer & Feld, LLP.

Akin, Gump, Strauss, Hauer & Feld, LLP was a funder for the Center for American Progress,

Vernon E. Jordan Jr. is a senior counsel for Akin, Gump, Strauss, Hauer & Feld, LLP, Valerie B. Jarrett’s great uncle, an honorary trustee at the Brookings Institution (think tank).