BUZZ-Health insurers jump as US boosts 2026 payment rates

Reuters2025-04-08
BUZZ-Health insurers jump as US boosts 2026 payment rates

** Shares of U.S. health insurers surged in extended trading after the U.S. government announced a 5.06% increase in payment rates to private insurers for 2026 Medicare Advantage health plans

** Shares of UnitedHealth Group UNH.N up 6.3%, CVS Health Corp CVS.N up 7.3%, Elevance Health ELV.N up 8.5% and Humana HUM.N up ~14%

** This is significantly higher than the 2.2% increase initially proposed early this year

** The change will affect the premiums, benefits, and profits of private health insurers managing Medicare plans for people 65 and older or with disabilities

** YTD, UNH up 3.7%, CVS up 42.2%, ELV up 14.7% and HUM up 0.4% vs a 1.7% decline in the S&P 500 health care index .SPXHC

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com;))

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