CI - Health insurers gain on new Medicare proposal for 2023

Health insurers climbed in the post-market after the Centers for Medicare & Medicaid Services (CMS) published 2023 payment policy changes for Medicare Advantage and Part D drug programs. Under the proposed rates issued on Wednesday, the program revenue of private Medicare plans serving nearly 27M beneficiaries is set to increase by approximately 8%. The 2023 Advance Notice indicates an effective growth rate of ~5% for Medicare Advantage plans. The final rate announcement will be made on April 01, following a period for public comments through April 04. Among stocks leveraged on Medicare Advantage plans, Humana (NYSE:HUM) led the gainers with a rise of ~6% in after-hours followed by ~2% gain in UnitedHealth (NYSE:UNH). Anthem (NYSE:ANTM) and Alignment Healthcare (NASDAQ:ALHC) added ~2% each, while Cigna (NYSE:CI) gained ~1%. However, Clover Health (NASDAQ:CLOV) extended intraday losses with a ~1% decline even after two Wall Street firms shared positive views on its outlook.

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Health insurers gain on new Medicare proposal for 2023