US Boosts Medicare Payments to Insurers by Over $25 Billion (3)

April 8, 2025, 1:36 PM UTC

The US government will pay private Medicare Advantage plans more money next year than it originally proposed in January, a major win for insurance companies that have faced increasing scrutiny in Washington.

The shares of insurers surged on the decision, posting some of their biggest intraday gains since 2020. UnitedHealth Group Inc. stock rose as much as 11%, CVS Health Corp. stock jumped as much as 12% and Humana Inc. stock soared as much as 15% when markets opened in New York.

Medicare Advantage plans will see payments increase by an average of 5.06%, more than double the rate the ...

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