UnitedHealth Jumps on Early Medicare Bonus Payment Outlook (2)

UnitedHealth Group Inc. said it expects most of its Medicare Advantage members to be in highly rated plans that earn bonus payments next year, a boon for its health insurance business.

Preliminary data show about 78% of members will be in plans with at least four stars, the threshold for earning bonus payments, the company said in a filing Tuesday. The star rating system set by Medicare evaluates plans on quality and customer experience, with financial rewards for those that perform well.

The preliminary star rating results are “likely better than some investors feared,” JPMorgan analysts led by Lisa Gill ...