BUZZ-Health insurers surge as US finalizes 2.48% Medicare Advantage payment hike

Reuters04-07 04:54
BUZZ-Health insurers surge as US finalizes 2.48% Medicare Advantage payment hike

Updates

** Shares of U.S. health insurers rise in extended trading after U.S. finalizes increase of 2.48% in ​Medicare Advantage payment next year, above 0.09% hike proposed in January

** Shares of Medicare-focused insurer Humana rise 11.5%, CVS Health CVS.N rise ~9%, while UnitedHealth Group UNH.N up 9.2%

** Elevance Health ELV.N rise ~6%, Molina Healthcare MOH.N up 4.3%, Centene CNC.N up 5.3%, while CignaCI.N rise 1.2%

** News comes as relief to insures who lost billions in market value after Trump administration proposed minimal 0.09% increase in 2027 Medicare Advantage payments in January

** UnitedHealth and CVS have broader business lines that can help buffer Medicare Advantage volatility, while Humana remains more concentrated in plans for older adults.

(Reporting by Harshita Mary Varghese in Bengaluru)

((HarshitaMary.Varghese@thomsonreuters.com))

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