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This Marketplace podcast is supported by Faye Greed Drinker, one of the largest law firms in Minnesota,

with nearly 300 Minneapolis attorneys helping clients solve complex legal issues

and meeting their goals in the Twin Cities and beyond,

fagreedrinker.com.

Health insurance companies wake up today with a headache.

I'm David Brancaccio in Los Angeles.

Stock and the health insurance company Humana is down 15% in pre-market trading right now.

Elevents, which does Blue Cross Blue Shield, down more than 7%.

The staff report the government plans to give them just a small raise for privatized Medicare Advantage plans.

Marketplace as Nancy Marshall-Genzor explains.

Medicare pays big insurers like United Health Group and CVS Health to manage Medicare Advantage

plans for seniors. Yesterday, the Centers for Medicare and Medicaid services, which

administers Medicare, projected a rate increase for these insurers

of slightly less than 1%. The companies were expecting closer to 4 or 5%. The government is trying

to crack down on companies that read patients' medical charts and conclude they have additional

illnesses. Insurers are paid more when patients are sicker. Now, Medicare wants to change that,

only paying for new illnesses diagnosed during a visit to a doctor's office. The Centers for

Medicare and Medicaid Services says it's trying to limit growing unnecessary costs from, quote,

coding practices that do not lead to better quality coverage.

It'll finalize new rates by this April.

The Trade Group, America's Health Insurance Plan, says the proposed low rate could result in benefit cuts and higher costs for seniors.

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