Insurance Stocks Jump on Medicare Advantage Rate Boost: Humana, UnitedHealth, Lead Gains

The Trump administration will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027, according to Centers for Medicare & Medicaid Services (CMS).

Shares of major insurance companies jumped in premarket trading on Tuesday.

Humana up 11%; UnitedHealth up 7%; CVS Health, Elevance Health up 6%; Centene up 4%; Oscar Health up 1%.

The Trump administration in January proposed a payment rate hike of 0.09%, which pummeled shares of insurers that run those plans. The closely watched government payment rate determines how much insurers can charge for monthly premiums and plan benefits they offer and, ultimately, their profits.

“Medicare Advantage and Part D should work for the people who rely on them,” said CMS Administrator Dr. Mehmet Oz in a release. “These updates keep coverage affordable and ensure patients get real value from their plans.”