US health insurer shares fall after UnitedHealth flags Medicaid enrollment issues

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US health insurer shares fall after UnitedHealth flags Medicaid enrollment issues
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NEW YORK - Shares of U.S. health insurers fell on Wednesday after UnitedHealth Group cited a near-term disturbance around reimbursement rates for Medicaid due to ongoing program-wide enrollment hurdles that began about a year ago.

Insurers calculate the premium rates they charge based on expected enrollment levels and anticipated medical services utilization by members. KFF, formerly the Kaiser Family Foundation, estimated that as of May 23, 22 million people had been disenrolled from Medicaid and the CHIP insurance program for children, and that 22 million renewals were still underway. About 49 million had their coverage renewed.

In addition to Medicaid plans for people with low income, UnitedHealth and other insurers manage health plans for the U.S. Medicare program for people aged 65 and older or with disabilities.

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