Shares of several large health insurance companies tanked on Tuesday after the Trump administration proposed keeping Medicare Advantage reimbursement rates roughly the same through 2027. Stock prices for Humana and UnitedHealth Group dropped roughly 20% in early trading on Tuesday morning following the Medicare Advantage reimbursement rate news.

The Trump administration’s top Medicare official is coming to the defense of the 2027 Medicare Advantage rate notice, after the rule sparked a wave of backlash from the health insurance sector.

Medicare Advantage payment rates will rise by just 0.09 per cent in 2027, resulting in more than US$700-million in additional payments, the Centers for Medicare and Medicaid Services said late on Mond...