What are the chances CMS will move off their proposed 0.09% rate for 2027?
It was approximately 5.0% for 2026 but they decided to basically eliminate it for 2027. After they announced the rate all health insurance stocks dropped massively.
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They are going to keep it low and expect UHG/Humana/Molina to “eat the tariffs” so to speak. UHG has sponsored a golf event at Trump National in December, spent tons on lobbying last year. None of that worked. Why would it start to work now?
The programs are a financial dead end filled with fraud and the Administration needs available revenue for security of the Strait of Hormuz long term now. $200/bbl oil will cause more pain at midterms than MA plan graft being brought down a bit.
Spend is down like 45% on the MA benefits rails according to every 28+ person and our own quarterly results.
Time to apply early and often to new jobs.
I honestly don't understand the logic of the tiny 0.09% increase from CMS. Care costs more these days and more seniors are consuming care at a higher level than ever before. The 0.09% increase for 2026 is laughable. I'm not sure the government knows what they are doing here. Was an adjustment needed? Sure. The current environment though will likely lead to the collapse of Medicare Advantage plans / Value Based Care Models outright. If that happens... we are back to all senior care being provided by the government without any checks and balances. What I'm always wondering is..... who is keeping track of the level of care provided and the health care quality and dollars spent for everyone within the traditional Medicare Plan structure??? .... psst... no-one is! MA plans are held to a significantly higher standard than traditional medicare plans are.
I think it will come up otherwise seniors are going to see premium hikes and benefit cuts right before the mid terms.