Humana (HUM) Slammed On Lower-Than-Expected Proposed Medicare Rate Increase

Humana (NYSE: HUM), and other Medicare plan providers, are under heavy pressure today after the government proposed a much lower-than-expected payment rate increase of 0.5% for 2010.

Commenting on proposed rates from the Centers for Medicare & Medicaid Services, Humana said, "the rates as announced would have a significant adverse impact on 2010 premiums and benefits for Medicare Advantage members if these rates become final."

Shares of Humana are down 24% in mid-day action. UnitedHealthGroup Inc. (NYSE: UNH) is down 14% on the news and WellPoint Inc. (NYSE: WLP) is down 7%.

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