What’s behind Medicare Advantage flat pay, rule changes

Bob Herman covers medical insurance, authorities packages, hospitals, physicians, and different suppliers — reporting on how cash influences these companies and shapes what all of us pay for care. He’s additionally the writer of the Well being Care Inc. e-newsletter. You possibly can attain Bob on Sign at bobjherman.09.

Well being insurers have endured a litany of issues with Medicare Benefit over the previous three years. They had been optimistic issues would flip round with the Trump administration in cost.

Powerful luck, for now.

The administration shocked Medicare Benefit insurers and their traders by proposing a minuscule pay increase for 2027 and, extra importantly, one other sequence of insurance policies that intend to root out unscrupulous behaviors that insurers have used to raise earnings. The proposed regulation from the Facilities for Medicare and Medicaid Companies wiped away tens of billions of {dollars} in market worth collectively from the biggest sellers of personal Medicare plans, together with UnitedHealth Group, Humana, CVS Well being, and Elevance Well being.