08:26 AM EDT, 04/02/2024 (MT Newswires) -- Humana (HUM) was down nearly 10%, UnitedHealth Group ( UNH ) fell 4.8%, while CVS Health ( CVS ) was 4.9% lower in Tuesday premarket activity following the Centers for Medicare and Medicaid Services' declaration of a 3.7% average revenue boost for Medicare Advantage plans in 2025.

While consistent with the earlier proposed increase from the government in January, investors were anticipating a modest uptick, according to media reports, which added that the number amounts to a 0.16% decrease in the benchmark rate.

Analysts at JPMorgan Securities said that over the last decade, there has been only a single instance where final rates did not increase from the initial proposals by regulators, Bloomberg reported Tuesday.

Humana Chief Financial Officer Susan Diamond said during a conference last month said that unless there is a more substantial rise in payments the company would fail to reach the upper limit of its objective to increase earnings by $6 to $10 per share in 2025, according to a Capital IQ transcript.

Price: 314, Change: -37.45, Percent Change: -10.66