Humana, UnitedHealth Soar as US Raises Medicare Advantage Rates
Source: Bloomberg
April 6, 2026 at 4:19 PM EDT
Updated on April 7, 2026 at 10:20 AM EDT
UnitedHealth Group Inc., Humana Inc. and other insurers who provide private Medicare Advantage plans for older Americans rose after the US agreed to boost 2027 payments by 2.48%, an improvement over its initial proposal and a respite for the industry thats been battered by federal cost-cutting efforts.
Shares of major insurance companies jumped, with industry leader UnitedHealth rising as much as 10%, the most intraday since August. Humana increased as much as 11%, while CVS Health Corp. rose as much as 6.9%
The final policy from the Centers for Medicare and Medicaid Services influences how more than half a trillion dollars flow through private health plans. The payment change is expected to add over $13 billion in additional payments to Medicare Advantage plans next year, CMS said.
The preliminary rates in the agencys January proposal disappointed Wall Street by holding payments close to flat for next year. Insurers called that untenable and lobbied for a bigger increase to cover rising medical expenses.
Read more: https://www.bloomberg.com/news/articles/2026-04-06/medicare-finalizes-2-48-rate-hike-for-private-insurers-in-2027
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bucolic_frolic
(55,268 posts)angryxyouth
(343 posts)Republicans still trying to break the system!
Over the past two years, Medicare Advantage plans have been overpaid by an estimated $160 billion to $168 billion compared to traditional Medicare. In 2025 alone, overpayments are projected to be between $76 billion and $84 billion, with the Joint Economic Committee noting that these overpayments increase Part B premiums by $212 per beneficiary, totaling $13.4 billion. These overpayments not only affect taxpayers but also lead to higher premiums for all Medicare beneficiaries, including those in traditional Medicare.
vapor2
(4,563 posts)Effn advantage plans are a scheme
SergeStorms
(20,610 posts)really paid off, I guess.
Until we have meaningful campaign finance reform the sale of our government will continue unabated.