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Government to raise Medicare Advantage rates, not cut them

  • The government surprisingly intends to increase Medicare Advantage payments by about 1.25% in 2016, reversing a proposal to make a cut of 0.9%.
  • The move should benefit insurers such as UnitedHealth (NYSE:UNH) and Humana (NYSE:HUM).
  • The change is mainly connected to tweaks in estimates of how fast Medicare spending has been rising rather than to changes in policy.
  • Other health insurers include: AET, HNT, MO
  • ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS-OLD

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UnitedHealth Group Incorporated