US Insurance Stocks Plummet Up To 13% After Trump Admin's Medicare Advantage Proposal

• Major US insurance and healthcare stocks like Humana, CVS Health, UnitedHealth, and Elevance Health dropped 3-13% in extended trading.
• The decline followed the Trump administration's proposal of a minimal 0.09% payment increase for Medicare Advantage insurers in 2027.
• This proposed increase is significantly lower than Wall Street's anticipated 4-6% hike, causing investor concern.
• Humana shares fell 13%, CVS Health nearly 10%, and UnitedHealth, a Dow Jones component, declined 9%.
• The Medicare Advantage rate is a fixed monthly allowance paid by the US government to private insurers for citizen coverage.

Why It Matters: US insurance stocks fell sharply after a lower-than-expected Medicare Advantage payment increase proposal.