New York, Jan 29, 2026, 10:22 EST — Regular session
Shares of UnitedHealth Group Incorporated (UNH.N) dropped 1.2% to $290.50 by 10:07 a.m. EST Thursday, marking another volatile day for the U.S. health insurance giant this week.
The stock has swung sharply after regulators unveiled a near-flat update for 2027 Medicare Advantage rates — the payments the government makes to private Medicare plans serving seniors and people with disabilities. The Centers for Medicare and Medicaid Services suggested a 0.09% increase, far below the expected rise of up to 6%. Analysts warn insurers might have to trim benefits or withdraw from plans if these figures hold. 1
UnitedHealth on Tuesday flagged strong execution and a 2026 outlook that projects revenue topping $439 billion alongside adjusted earnings exceeding $17.75 per share, following 2025 revenue of $447.6 billion. CEO Stephen Hemsley said the company closed out 2025 “as a much stronger company,” despite a challenging year. 2
Investors zeroed in on the policy squeeze. UnitedHealth tumbled as much as 19% Tuesday, closing at $282.45—its steepest one-day fall since April last year. The drop followed CEO Tim Noel’s comments on the Medicare proposal, which he called “disappointing,” warning it will force “very meaningful benefit reductions” and a closer look at the company’s footprint. The firm also projected a 2026 medical care ratio of roughly 88.8%, the portion of premiums spent on care. Additionally, UnitedHealth took a $1.6 billion after-tax charge linked to the Change Healthcare cyberattack and restructuring. 3
Wall Street began dialing back expectations. Oppenheimer’s Michael Wiederhorn lowered his price target to $385 from $415, maintaining an “outperform” rating. He cited robust results at UnitedHealthcare but noted weakness at Optum amid ongoing restructuring. 4
The obvious downside: if reimbursement remains tight and medical costs keep climbing, insurers might have to take measures that slow growth before margins improve. Policy risk is tough to manage—one change in the final rate notice can wipe out a year’s projections.
Other managed-care stocks held steady early on: Humana barely moved, CVS Health ticked up slightly, and Cigna edged down a bit.
The next major event is on the government’s schedule. CMS will release the final 2027 Medicare Advantage rate announcement by April 6, with public comments expected by Feb. 25. 5
