Insurers Soar After US Boosts Final Medicare Advantage Rates (3)

The US Medicare program will pay private insurers 2.48% more in 2027, a meaningful improvement over the initial rates the agency proposed in January.

Shares of major insurance companies jumped on the news in trading after US markets closed, with UnitedHealth Group Inc. up 9.9%, Humana Inc. rising 13%, and CVS Health Corp. up 7.8%.

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 up to over $13 billion in additional payments to Medicare Advantage plans next year, ...