Major healthcare stocks plummeted following the Trump administration's proposal for a negligible 0.09% increase in Medicare Advantage reimbursement rates for 2027. Humana saw the steepest decline at 21%, while CVS Health dropped 14%, as analysts criticized the proposed rates as 'basically nothing.' Financial experts warn that if these rates are finalized, insurers could experience a significant earnings decrease of 15-20%, raising concerns of a prolonged period of stagnation in the sector.
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