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flag CMS proposes 0.09% Medicare Advantage payment hike for 2027, sparking insurer stock drops and concerns over benefits.

flag The Centers for Medicare & Medicaid Services proposed a 0.09% average payment increase for Medicare Advantage plans in 2027, far below the 4% to 6% analysts expected, sparking sharp declines in health insurer stocks. flag The minimal rise, coupled with proposed changes to billing rules, has raised concerns about insurer profitability amid rising healthcare costs. flag UnitedHealth, Humana, CVS Health, and others saw shares drop 5% to 13% in after-hours trading. flag CMS said the adjustment aims to improve payment accuracy and control spending, though industry leaders warn flat funding could affect benefits and coverage quality for the 35 million enrollees. flag The final rule is set for April 6.

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