Shares of several large health insurance companies tanked on Tuesday after the Trump administration proposed keeping Medicare Advantage reimbursement rates roughly the same through 2027. Stock prices for Humana and UnitedHealth Group dropped roughly 20% in early trading on Tuesday morning following the Medicare Advantage reimbursement rate news.

Shares of major insurers were hit hard after The Wall Street Journal reported the Trump administration was proposing roughly flat rates for Medicare insurers next year, far less than Wall Street expec...