UnitedHealth Group, Inc. (NYSE:UNH) experienced a historic market rout on Tuesday, with its stock plunging 20% in a single day.
UNH stock is tanking. See the chart and price action here.
The catalyst was a double whammy: a disappointing fourth-quarter earnings report coupled with a shockingly low 2027 rate proposal from the Centers for Medicare & Medicaid Services (CMS).
CMS Rate Shock
The primary driver of the sell-off was the CMS 2027 Advance Notice, which proposed a net payment increase of just 0.09%.
The basically flat rate figure was a staggering miss compared to analyst expectations of 4% to 6%. In the health care insurance world, where medical inflation is currently running between 7% and 10%, a flat rate is effectively a massive budget cut.
UnitedHealth’s leadership did not mince words during the insurer’s fourth quarter earnings call on Tuesday morning.
UnitedHealthcare Unit CEO Timothy Noel labeled the CMS notice as a …Full story available on Benzinga.com
