Becker's Healthcare January 23, 2023
Payers’ stocks, which remained strong through 2022, could take a hit in 2023 as the Federal Reserve relaxes interest rate hikes and federal regulators tighten rules around Medicare Advantage, The Wall Street Journal reported Jan. 23.
Analysts told Journal that historically, insurers’ stocks have tended to underperform when tightening cycles end. Payer stocks tend to outperform the market during tightening cycles, when the Fed ups interest rates.
On top of changes from the Fed, upcoming adjustments to Medicare Advantage risk adjustment data validation could also spell trouble for insurers, according to the Journal.
CMS will announce its final rule for updating the RADV process Feb. 1. In its proposed rule, the agency excludes the fee-for-service adjuster, which...
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