Reported 4 months ago
Shares of U.S. health insurers dropped after UnitedHealth Group's CEO Andrew Witty expressed concerns about Medicaid usage, citing possible cost increases due to member turnover. The Medicaid policy requiring continuous enrolment during the COVID-19 pandemic was terminated in 2023, prompting states to reassess eligibility. This led to 22 million disenrolled and 22 million renewals in progress. UnitedHealth shares fell 3.8%, while rivals Humana, Centene, and Elevance Health also saw declines. Analysts anticipate challenges related to rates and costs in Medicare Advantage and predict similar issues in Medicaid management by insurers.
Source: YAHOO