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By Bob Herman
Jan. 10, 2025
Business of Health Care Reporter
The Biden administration’s final regulation affecting the Medicare Advantage industry would come with a much lighter touch than the past two years.
President Biden’s Centers for Medicare and Medicaid Services on Friday proposed to increase the average benchmark payment to private Medicare Advantage plans by 2.2% for 2026. That compares to cuts of 0.2% for this year and 1.1% in 2024, although the Biden administration gave the Medicare Advantage industry one of the largest-ever payment hikes in 2023.
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UnitedHealth Group is the largest seller of Medicare Advantage plans, followed by Humana and CVS Health. Together, those three companies cover nearly 60% of the market. UnitedHealth’s stock rose 2.4% after the close of regular trading, Humana climbed 3.3%, and CVS gained almost 2%.
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Bob Herman
Business of Health Care Reporter
Bob Herman covers health insurance, government programs, hospitals, physicians, and other providers — reporting on how money influences those businesses and shapes what we all pay for care. He is also the author of the Health Care Inc. newsletter.
Unpacking the business — and secretive inner workings — of the U.S. health care industry
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