New York, Feb 3, 2026, 19:40 EST — After-hours
- UnitedHealth shares slipped roughly 0.5%, last seen at $284.18
- This week, JPMorgan and Truist cut their price targets amid ongoing uncertainty over Medicare Advantage rates
- A new study highlighted rising prices at surgery centers bought by Optum, intensifying scrutiny of provider acquisitions
UnitedHealth shares slipped 0.5% to $284.18 in after-hours trading Tuesday, having fluctuated between $278.68 and $287.88 earlier in the session.
The stock continues to weigh on managed-care investors following the Centers for Medicare & Medicaid Services’ proposal of a modest 0.09% average net payment bump for 2027 Medicare Advantage plans. Medicare Advantage, the private alternative to traditional Medicare, relies on this update to determine insurer payments.
UnitedHealth projected revenue exceeding $439 billion for 2026, with adjusted earnings topping $17.75 per share. “We confronted challenges directly and finished 2025 as a much stronger company,” CEO Stephen Hemsley said in the company’s latest outlook. UnitedHealth Group
Tuesday’s drop followed a wider selloff that dragged the S&P 500 down 0.84% by the close, as investors grew uneasy over how quickly AI tools might disrupt the software sector. “We’ve got an expensive market and expectations are really high,” said John Campbell, senior portfolio manager at Allspring Global Investments. Reuters
Analysts continue slashing targets. JPMorgan lowered its price target on UnitedHealth to $389 from $425 Monday but held onto an overweight rating, MT Newswires reported.
Truist cut its price target to $370 from $410 but kept a buy rating, MT Newswires reported.
Optum’s acquisitions are also drawing scrutiny. A study out Monday in Health Affairs revealed outpatient surgery center prices jumped roughly 11% after Optum bought them, compared to facilities that remained independent, Healthcare Dive reported. Optum didn’t reply to a request for comment.
Income investors are keeping an eye on the calendar: UnitedHealth usually announces dividend changes in February, as well as in June, August, and November.
Humana, Elevance Health and CVS Health are all grappling with the same issue: Medicare Advantage reimbursement, which is now a key factor in their forecasts.
But the downside risks remain. UnitedHealth’s own forward guidance points to Medicare policy changes, risk-adjustment audits, and government probes as potential disruptors, on top of the typical fluctuations in medical costs.
Investors now turn to two key dates for the Medicare Advantage payment proposal: the comment period closes on Feb. 25, and CMS must release the final rates by April 6 at the latest.
