Humana, UnitedHealth Soar as US Raises Medicare Advantage Rates [View all]

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 that’s 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 agency’s 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