CNC, UNH, CVS, HUM Stocks Slip After-Hours — Trump Administration Reportedly Seeks To Scrap Subsidies On Certain Medicare Plans

Administration officials told the Wall Street Journal that the subsidy program that has helped suppress Medicare Part D prescription drug plan premiums will not be renewed for 2027.

• The program currently provides insurance companies with an estimated $3.6 billion in subsidies this year to offset premium increases.
• The subsidy primarily benefits insurers offering stand-alone Part D plans. 
• Centene holds the largest share of stand-alone Medicare Part D (PDP) enrollment via Wellcare.

Shares of health insurance companies, including Centene (CNC), slipped after-hours on Tuesday following a report that the Trump administration plans to end a federal subsidy program that has helped suppress Medicare Part D prescription drug plan premiums.

The federal program is currently channeling an estimated $3.6 billion to insurers this year to keep Part D premiums in check. Officials told The Wall Street Journal that the support will expire after 2026 and will not be extended into 2027. The Journal states that about 25 million Americans are enrolled in Part D plans, with the average monthly premium this year running near $36.

Decision Impact

The Wall Street Journal reports the decision could leave many seniors confronting higher premiums for their stand-alone prescription coverage beginning in 2027. Without the federal support, plan sponsors may pass increased costs to enrollees, potentially accelerating shifts toward Medicare Advantage plans that bundle drug benefits.

An administration official quoted by the Journal projected that roughly one-quarter of Part D enrollees will see their premiums hold steady or decline in 2027, about 30% will face hikes under $10 a month, and the remaining 45% will largely see increases in the $11–$20 range.

Insurer Stocks React

The subsidy primarily benefits insurers offering stand-alone Part D plans (PDPs). Companies with substantial PDP enrollment—UnitedHealth Group (UNH), CVS Health (CVS, via Aetna), Humana (HUM), Centene (CNC, via WellCare), and Molina Healthcare (MOH)—stand to lose this revenue stream. Loss of the $3.6-billion in support could pressure margins if insurers absorb costs or reduce competitiveness through higher premiums, risking enrollment declines. However, beneficiaries might also migrate to Medicare Advantage plans and help offset losses.

Centene holds the largest share of stand-alone Medicare Part D (PDP) enrollment via Wellcare — more than eight million members as of early 2026, or about one-third of the entire PDP market, exceeding the exposure of its rivals. CNC shares dived 3% after hours on Tuesday, while shares of UNH, CVS, and HUM fell by about or less than 1%.  

How Did Retail Traders React?

On Stocktwits, retail sentiment around CNC jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

CNC stock has gained 55% year to date, compared to heavyweight UNH’s 30% gain. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<