• Mon. Apr 22nd, 2024

Healthcare Businesses to Reduce Benefits for Seniors amid Lower Medicare Advantage Plan Payments in 2025

BySamantha Nguyen

Apr 2, 2024
Healthcare stocks decrease following disappointment in Medicare Advantage rates

The healthcare industry is facing pressure on Tuesday due to lower-than-expected Medicare Advantage plan payments for 2025. In an interview with Yahoo Finance Live, TD Cowen Senior Equity Research Analyst, Gary Taylor, explained the implications of this decision for the industry.

Taylor described the situation as an “annual political dance” between the industry and Centers for Medicare & Medicaid Services (CMS). When a proposed rule, like the 2025 Medicare Advantage (MA) proposed rule, is released, the industry typically lobbies for higher proposed rates. However, this time, CMS did not make any adjustments to the rates in the final notice.

According to Taylor, the potential fallout from this decision could lead to healthcare businesses reducing the benefits they offer to seniors next year. This could ultimately improve their margins and drive higher earnings growth in the industry.

To get more expert insights and stay updated on the latest market trends, you can watch the full episode of Market Domination for more information.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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