UnitedHealth Group (UNH) could lose significant funding as the Trump administration plans to terminate a Medicare prescription drug subsidy program, The Wall Street Journal reported Wednesday, citing administration officials.
The government will end the $3.6 billion subsidy after 2026, which would have directed more than half of its funds to UnitedHealth next year, the report quoted the administration officials as saying.
Authorities stated the financial support encouraged insurers to raise rates and is no longer necessary to stabilize the market, the report said, citing Centers for Medicare and Medicaid Services Administrator Mehmet Oz.
UnitedHealth Group and the White House did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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