Cantor Fitzgerald says quick health insurers recovery after CMS call ‘unlikely’

Cantor Fitzgerald writes that Healthcare Insurance names should see a materially negative stock reaction after the announcement from CMS that the 2027 Medicare Advantage Advance Notice Rate would be around 0.09% on average vs. the investor Base Case expectations of 5%. It is unlikely that stocks in the space will see a quick recovery, as the rates indicate the entrance of a more political influence than seen in past rates, the analyst tells investors in a research note. Publicly traded companies in the space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH).