Some health insurers rise on better-than-expected Medicare payment rates

Shares of few health insurers rise premarket after the U.S. announced a 5.06% average increase in the government's final reimbursement rates for 2026 Medicare Advantage (MA) health plans

The rate increase is more than double of what was proposed in January

Shares of Medicare-focused insurer Humana HUM.N rises the highest, up 11.2%, while UnitedHealth Group UNH.N up 5.8%, Centene CNC.N up 3.6% and CVS Health CVS.N up 6.6% premarket

The rate the U.S. government pays to private health insurers influences the monthly premiums they charge, plan benefits they offer and, ultimately, their profits

"The better-than-expected rate update is a clear positive for the MA managed care group, which has struggled to maintain medical loss ratios in recent years, given funding headwinds under the Biden administration and rising healthcare utilization," says brokerage William Blair

Up to last close, CNC up 1.3% and UNH up 3.7% YTD