BUZZ-Health insurers set to end another year with losses

Shares of health insurers are on track for a second straight year of declines as they grapple with elevated medical costs

UnitedHealth UNH.N, Humana HUM.N, CVS Health CVS.N and Cigna CI.N have seen high medical costs as people sought care under government-backed Medicare Advantage plans for older adults or those with disabilities

Costs have also been higher for companies such as Centene CNC.N and Elevance ELV.N, which offer Medicaid plans, as states re-determined eligibility for low-income people, leaving behind those who require more medical services

The S&P 500 Managed Health Care .SPLRCHMO index has fallen 10.85% YTD, with Humana being the bigger loser

Insurers, which own pharmacy benefit management units, have also come under scrutiny for their influence over prescription drug prices

Some health insurers may benefit from the Trump administration in 2025, however, investor focus will likely remain on costs, which are expected to remain elevated

Uncertainty for Medicare Advantage continues in 2025 and should remain a focal point, J.P.Morgan analysts said in note earlier this month

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com))