UnitedHealth Group’s stock dropped 20% after the company lowered its annual profit forecast, citing higher-than-expected medical costs in its Medicare Advantage plans.

This setback, amid rising medical expenses and the impact of the Covid-19 pandemic on seniors’ care, signals potential trouble for other insurers with similar plans.

Analysts highlighted concerns over accelerating costs, especially as more seniors seek delayed procedures.

Competitors like Humana, Elevance Health, and CVS also saw stock declines, while Cigna’s stock rose, CNBC has reported.

UnitedHealth’s struggles with medical costs, government scrutiny, and changes in patient profiles are causing uncertainty, but the company remains hopeful for improvement by 2026, aided by potential reimbursement increases for insurers next year.

Written by B.C. Begley