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It\u2019s a good day for America\u2019s largest health insurance stocks. <\/p>\n<\/div>\n
The biggest players in America\u2019s private, for-profit health insurance system, including UnitedHealth Group Incorporated (NYSE: UNH), Humana Inc. (NYSE: HUM), and CVS Health Corporation (NYSE: CVS), are all seeing their share prices rise after the Trump administration announced it will backtrack on earlier proposals and increase Medicare insurer payments significantly more than expected. <\/p>\n
Here\u2019s what you need to know.<\/p>\n
On Monday, the Centers for Medicare & Medicaid Services (CMS), the federal agency that manages America\u2019s government-funded health programs, including Medicare, announced that it would increase payments to Medicare insurers by a net average of 2.48% in 2027.\u00a0<\/p>\n<\/div>\n
This increase is significantly more than the original 0.9% increase that the CMS said it would implement in 2027, and comes after intense lobbying and pushback from the private insurance industry when that sum was announced in January.<\/p>\n
The revised Medicare Advantage payment rate announcement<\/a> sent health insurance stocks surging, and means that an additional $13 billion in Medicare Advantage will be made to private health insurers in 2027.<\/p>\n