US EditionUS to raise Medicare Advantage payments to insurers by 2.48% in 2027, insurance stocks surge
The increase adds more than $13 billion in 2027 payments and lifted UnitedHealth, Humana and CVS Health shares in after-hours trading.
- 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.
14 Articles
14 Articles
Medicare Boosts, Billion-Dollar Buyouts, and Weight-Loss Pill Demand Propel Health Sector Buzz
Medicare Boosts, Billion-Dollar Buyouts, and Weight-Loss Pill Demand Propel Health Sector Buzz The U.S. government has approved a significant 2.48% increase in payments to insurers offering Medicare Advantage plans by 2027. This surge, higher than initial proposals, has led to a notable rise in stocks for companies like UnitedHealth and CVS as they anticipate more than $13 billion in additional payments.Meanwhile, Neurocrine Biosciences is makin…
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.
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
