Health insurers rise after boost to Medicare reimbursement rates

Shares of some health insurers rise 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 gain the most, up 15%, while UnitedHealth Group UNH.N jumps 10.6% and CVS Health CVS.N rises 8.4%

Centene CNC.N shares up 7.5%, Cigna CI.N up 1.1% and Elevance Health ELV.N up 8.5%

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

Including session's move, CNC up 6% YTD, UNH up 11.7%, HUM up 12.2%, CI up 16.4%