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Home.forex news reportUnitedHealth (UNH) Loses 19.6% on Weak Outlook, Medicare Payment Update

UnitedHealth (UNH) Loses 19.6% on Weak Outlook, Medicare Payment Update

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We recently published 10 Big Names With Painful Declines. UnitedHealth Group Inc. (NYSE:UNH) was one of the worst performers on Tuesday.

UnitedHealth dropped its share prices by 19.61 percent on Tuesday to close at $282.70 apiece as investors soured on its weaker outlook for 2026, as well as disappointing Medicare Advantage payment rates for next year.

In a statement on Monday, the Centers for Medicare & Medicaid Services (CMS) announced a mere 0.09 percent increase in Medicare Advantage payments for next year, far lower than the 4 to 6 percent growth as expected by analysts.

Jirsak / shutterstock.com

Investors turned cautious amid the potential impact of the mere uptick on listed insurers’ profit margins.

In other news, UnitedHealth Group Inc. (NYSE:UNH) also lowered its revenue outlook for 2026 to just $439 billion, or a 2 percent decline year-on-year, reflecting planned right-sizing across the enterprise. This compares with $447.6 billion in 2025, or a 12 percent growth from 2024.

“UnitedHealth Group’s 2026 outlook is rooted in extensive actions it has taken in the past six months, including renewed operating disciplines and deeper commitment to its mission of helping people live healthier lives and helping the health system work better for everybody,” UnitedHealth Group Inc. (NYSE:UNH) said.

“The outlook reflects margin stability and growth across all four operating segments as the company continues to execute its long-term strategy,” it added.

While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.



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