🚀 Biden hurts health insurers

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. U.S. health insurer stocks took a hit on Tuesday after the Biden administration's decision on Medicare private plan payments fell short of industry expectations. CVS Health, UnitedHealth Group, Elevance Health, Centene, and Humana saw significant declines in their stock prices, with Humana experiencing the most substantial drop due to its heavy dependence on Medicare Advantage plans. The administration's decision results in effectively a slight decrease in payments after adjustments, despite announcing a 3.7% increase. This development poses additional challenges for insurers amid rising medical costs and other issues, such as a recent cyberattack on UnitedHealth Group. The decision impacts the Medicare Advantage sector, crucial for the industry's growth, as it offers plans that are appealing to over half of Medicare's enrollees due to their lower costs and additional benefits.

2. In March, the U.S. private sector experienced its highest job growth since July 2023, with ADP reporting the addition of 184,000 new jobs. This growth exceeded February's figures and aligned with expert predictions. Year-over-year wage growth also remained consistent at 5.1%. The leisure and hospitality, construction, and health services sectors saw notable increases in employment, with the South leading in job creation. This data does not account for government employment.

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4. Headlines

   1. Powell wants more data before rate cuts.

   2. Amazon announces mass layoffs at AWS.

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