BUZZ-Health insurers rise after US proposes 2026 payment rates

Updated prices to regular trading session

** Health insurance companies were rallying on Monday after the U.S. government on Friday proposed 2026 reimbursement rates for Medicare Advantage plans run by private insurers that will result in a 2.2% increase in payments, vs 0.2% decline last year

** Shares of insurers such as UnitedHealth Group UNH.N up 4.4%, CVS Health Corp CVS.N up ~6.9% and Humana HUM.N up 7.7%, leading gains in the S&P 500 health care index .SPXHC, up 1.2% on the day

** Shares in Elevance Health ELV.N up 4% on Monday, hitting their highest level since Dec. 10

** The government payment rate affects how much insurers charge for monthly premiums, which plan benefits they offer and ultimately, how much they can profit

** Brokerage Leerink says the proposed rate is "better than feared" given the early publication from the Biden administration

** Leerink says the final rate is typically 1% better than the advanced notice

** The final rate announcement will be published on or before April 7, 2025

** YTD UNH up 7.5% after falling 3.9% in 2024, CVS up 14.5% after a 43% drop last year, while HUM shares up 13.8% YTD after falling 44.6% in 2024

(Reporting by Christy Santhosh, Sinéad Carew)

((Christy.Santhosh@thomsonreuters.com; sinead.carew@thomsonreuters.com, +13322191897;))