UnitedHealth Group’s stock plummeted 21.44% on April 17, 2025, after slashing its 2025 profit forecast from $29.50-$30 to $26-$26.50 per share due to soaring Medicare Advantage costs. The insurer cited heightened demand for outpatient and physician services, with its medical care ratio rising to 85.5% in 2024. Q1 earnings met expectations at $7.27 per share, but revenue of $109.6 billion missed estimates. The announcement triggered a sector-wide selloff, with Humana, CVS Health, and Cigna shares dropping 3%-13%, potentially erasing $130 billion in market value. Hospital operators like HCA Healthcare gained 3%-7% amid increased service demand. CEO Andrew Witty called the results “unusual and unacceptable,” vowing to address challenges. The news highlights broader industry struggles with Medicare funding cuts and rising healthcare utilization, raising concerns about premium hikes and access to care for consumers. Investors face volatility, but UnitedHealth’s long-term fundamentals remain strong.