CMS authors plot twist in Medicare Advantage comeback story

The hill Medicare Advantage insurers have been climbing to regain peak profitability just turned into a mountain.

Leading carriers such as UnitedHealth Group subsidiary UnitedHealthcare and Humana got a shock Monday when the Centers for Medicare and Medicaid Services proposed virtually flat Medicare Advantage payments next year — not the bigger raise Wall Street expected — along with limits on tactics that have boosted revenue at taxpayer expense.

CMS’ announcement tanked health insurance company shares and threatens the comeback story health insurance companies have been spinning after a period of subpar financial results.

“It’s clearly not good news, unless you were smart enough to short the stocks,” said Ari Gottlieb, an independent health insurance consultant.

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