Overview
- CMS outlined an average 0.09% update for 2027 Medicare Advantage payments and moves to curb chart‑review diagnosis payments, which it estimates will yield about $700 million more to plans.
- Health insurer stocks slid sharply after the proposal, with UnitedHealth, Humana and CVS dropping in early trading and some losses approaching 20% as expectations for a 4%–6% increase were dashed.
- UnitedHealth reported fourth‑quarter adjusted earnings of $2.11 per share on $113.2 billion in revenue, a modest EPS beat with a revenue miss, and said medical costs were still elevated.
- For 2026, UnitedHealth forecast revenue above $439 billion, about a 2% decline, and said it plans divestitures and expects to end the year with more than 3 million fewer members as it "right‑sizes" the enterprise.
- UnitedHealth’s medical care ratio was about 89% for 2025 and is projected around 88.8% for 2026, underscoring ongoing cost pressure as the industry awaits final CMS rates due April 6.