Health insurers jump as US boosts 2026 payment rates

ReutersApr 7, 2025 9:26 PM

Shares of U.S. health insurers surged in extended trading after the U.S. government announced a 5.06% increase in payment rates to private insurers for 2026 Medicare Advantage health plans

Shares of UnitedHealth Group UNH.N up 6.3%, CVS Health Corp CVS.N up 7.3%, Elevance Health ELV.N up 8.5% and Humana HUM.N up ~14%

This is significantly higher than the 2.2% increase initially proposed early this year

The change will affect the premiums, benefits, and profits of private health insurers managing Medicare plans for people 65 and older or with disabilities

YTD, UNH up 3.7%, CVS up 42.2%, ELV up 14.7% and HUM up 0.4% vs a 1.7% decline in the S&P 500 health care index .SPXHC

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