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  • 15 hours ago
Health insurance stocks surged after CMS approved a 2.48% Medicare Advantage rate increase for 2027 — up sharply from a 0.09% January proposal — delivering $13B in additional payments. UnitedHealth jumped 10%, Humana gained 8.7%, and CVS Health climbed 6.6% as margin outlooks improved.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Health insurance stocks rose Tuesday after the federal government approved an average
00:062.48% Medicare payment increase for 2027, up from a 0.09% proposal in January, according to
00:13Barron's. UnitedHealth rose 10%, Humana gained 8.7%, and CVS Health climbed 6.6%.
00:20The final rate will deliver $13 billion in additional payments next year.
00:25Analysts said the increase improves the margin outlook and investor sentiment.
00:28The Centers for Medicare and Medicaid Services said it will not implement planned risk adjustment
00:33changes next year, which contributed to the higher rate.
00:35Medicare Advantage covers about 35 million beneficiaries, with enrollment continuing to grow.
00:41Industry groups said the increase reflects improvement from the initial proposal.
00:45For all things money, visit Benzinga.com.
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