WSJ What’s News Medicare Payments Shock Sends Health Insurance Stocks Diving
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Jan 27, 2026 
Anna Wilde Mathews, a Journal reporter who covers health insurance, explains the shock of a proposal to hold Medicare rates nearly flat. She outlines how insurers reacted and the potential fallout for plan benefits and market lobbying. The conversation also touches on broader market moves and related policy and industry shifts.
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Flat Medicare Rate Proposal Shocks Market
- The Trump administration proposed Medicare payment rates that would rise only about 0.09% next year, surprising investors and hitting insurer stocks hard.
- Anna Wilde Mathews says actuaries' cost estimates and policy changes aimed at transparency drive the low proposal and could curb some insurer billing practices.
Insurer Margins Affect Patient Benefits
- Insurers warn flat payments can squeeze margins and lead them to cut extra benefits, reduce plan availability, or add care restrictions.
- Anna Wilde Mathews explains those insurer reactions could directly affect beneficiaries' dental, plan choice, and specialist access.
Anticipate Aggressive Industry Lobbying
- Expect a major lobbying and public-relations push from insurers between now and the final rates in early April.
- Watch for advertising campaigns and congressional lobbying as insurers try to shift the proposed growth-rate calculation.