"Health Insurers Face Tumble as 2025 Medicare Advantage Rates Disappoint"

Health insurance stocks tumbled as US regulators decided not to increase payments for private Medicare plans, breaking from recent practice and surprising Wall Street. The decision signals another hurdle for insurers already facing faster-than-expected increases in medical costs. The announcement, which will result in a 0.16% decline in payments after excluding an estimate of how plans code for patient illnesses, is expected to put more pressure on health insurance plans. This move by the Biden administration reflects a tightening of payment policies and efforts to claw back past overpayments, impacting the industry's growth and profits.