Health Insurance Shares Climb After Medicare Reimbursements are Boosted
Shares of health insurance firms in the U.S. jumped after the federal government announced a reimbursement rate increase which was higher than what had been expected by the industry. The rate increase applies to Medicare Advantage plans and will take effect next year. This increase was welcome news to the industry that had seen their margins squeezed by rising costs of medical care. Humana, an insurer specializing in Medicare, saw its shares soar by 16% while other firms, such as Centene, UnitedHealth Group and CVS saw upticks ranging from 5% to 10%. After the Covid-19 pandemic, there was a surge…