03:57 PM EDT, 04/08/2025 (MT Newswires) -- Health care stocks were lower late Tuesday afternoon, with the NYSE Health Care Index falling 1% and the Health Care Select Sector SPDR Fund (XLV) dropping 1.8%.

The iShares Biotechnology ETF (IBB) slumped 4.5%.

In corporate news, the US Centers for Medicare and Medicaid Services said late Monday that it will increase payment rates for Medicare insurers to 5.06% next year, a 2.83 percentage-point increase over the previously proposed boost in January. Shares of UnitedHealth Group ( UNH ) , Humana (HUM), and CVS Health ( CVS ) were up 5%, 9.7%, and 5.3%, respectively.

Avadel Pharmaceuticals ( AVDL ) said Tuesday it expects to generate "sustainable positive cash flow" in 2025, driven by continued growth in patient demand for its narcolepsy drug Lumryz. Its shares still fell 1.6%.

Walgreens Boots Alliance's ( WBA ) fiscal Q2 results exceeded market expectations, while the drugstore chain withdrew its full-year guidance due to its proposed acquisition by Sycamore Partners. Walgreens shares were down 1.3%.

Agilon Health ( AGL ) shares jumped 25% after Bernstein upgraded the stock to outperform from market perform and raised its price target to $8.50 from $3.30.