US EditionPublished • loading... • Updated
US to raise Medicare Advantage payments to insurers by 2.48% in 2027, insurance stocks surge
The final rate adds more than $13 billion in payments after insurers said the earlier proposal missed rising medical costs.
- On Monday, the Trump administration finalized a 2.48% average payment rate increase for Medicare Advantage plans, injecting more than $13 billion into the program for 2027.
- This reversal from the 0.09% hike proposed in January marks a dramatic shift after insurers argued the initial proposal failed to reflect rising medical costs.
- Investors responded positively, driving shares of UnitedHealth and CVS Health up more than 9%, while Humana stock jumped around 12% in after-hours trading Monday.
- Regulators also paused changes to risk assessment policies, providing insurers an additional 2.5% benefit that brings the total effective rate increase to about 5%.
- CMS Administrator Dr. Mehmet Oz stated, "These updates keep coverage affordable," emphasizing the agency's aim to ensure patients receive real value from their plans.
Insights by Ground AI
11 Articles
11 Articles
US to raise Medicare Advantage payments to insurers by 2.48% in 2027, insurance stocks surge
The U.S. government said on Monday it would raise payments to private insurers offering Medicare Advantage plans to older adults in 2027 by 2.48% on average, an increase from the near-flat change it proposed in January, driving insurer shares up sharply.
·United Kingdom
Read Full Article
Coverage Details
Total News Sources11
Leaning Left3Leaning Right0Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
L 30%
C 70%
Factuality
To view factuality data please Upgrade to Premium
