Medicare Rates Shock Sparks $100 Billion Selloff in Insurers (1)

The selloff in health insurers that provide Medicare Advantage plans wiped out nearly $100 billion in stock-market value on Tuesday, even as US equities climbed to fresh highs.

Shares of managed-care companies sank, with UnitedHealth Group Inc. and Humana Inc. leading the losses by tumbling about 20%, after the Trump administration proposed holding payment rates flat next year and UnitedHealth forecast that revenue in 2026 will fall for the first time in more than three decades.

CVS Health Corp. and Elevance Health Inc. fell more than 12%. And a gauge of the group, the S&P Composite 1500 Managed Care Index ...