The Medicare Gold Rush Is Slowing Down

The popularity of private Medicare plans has been a huge driver of profits for insurance companies in recent years. There are signs the gold rush isn’t quite what it once was.

Investors have been worried all year as the Biden administration phases in a new system that insurers say will reduce federal payments to Medicare Advantage plans. Developments last week at the top two insurers in the Medicare business, UnitedHealth Group and Humana, raised more questions.