Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

https://www.cnbc.com/2026/04/06/trump-medicare-advantage.html

Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

Key Points

The Trump administration will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027, according to CMS.
That’s significantly higher than the proposed payment rate hike of 0.09% that the government floated in January.
Shares of UnitedHealth, CVS Health and Humana jumped in after-hours trading.

The closely watched government payment rate determines how much insurers can charge for monthly premiums and plan benefits they offer and, ultimately, their profits.

Medicare Advantage is a privately run health insurance plan contracted by Medicare. More than half of Medicare beneficiaries are enrolled in such plans, enticed by lower monthly premiums and extra benefits not covered by traditional Medicare, according to health policy research firm KFF.