The Trump administration sent ripples of fear through the insurance sector in late January, setting UnitedHealth Group (NYSE: UNH) and other insurance stocks up as buying opportunities. The sell-off was driven by a proposed update to Medicare reimbursements paid to private insurers. Investors reacted because the headline increase came in well below expectations, signaling tighter payment growth than the market had priced in.
Insurance stocks fell as a group following the announcement, with UnitedHealth Group among them. The company's stock price has now corrected by about 50% since mid-2025, amid CEO issues, a massive cyberattack, and regulatory and investor scrutiny.
