Humana says U.S. government proposal would cut funding by up to 1.75 percent

(Reuters) – Humana Inc said on Monday that the U.S. government’s proposed payments to insurers that sell Medicare Advantage health plans would mean a 1.25 percent to 1.75 percent cut for the managed care company in 2016. Humana said its geographic and member diagnosis mix affected the impact from the government payment rates. The U.S. Department of Health and Human Services on Friday evening proposed a cut in its funding of the Medicare Advantage health plans to older and disabled people. In addition, Morningstar Research analyst Vishnu Lekraj said, the company disclosed on Monday that it had higher-than-average quality ratings, which could help its Medicare Advantage plan sales.
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