BUZZ-Align Healthcare jumps after US lifts 2027 Medicare Advantage payment rates

** Shares of health insurer Alignment Healthcare ALHC.O rise 16.3% to $21.57

** The U.S. government said on Monday it would raise payments to private insurers offering Medicare Advantage plans to older adults in 2027 by 2.48% on average, an increase from the near-flat change it proposed in January

** J.P.Morgan says the improved rates put Alignment in a stronger position than larger managed-care rivals

** Brokerage says competitors’ likely pullback to defend margins could give Alignment room to sustain more than 20% enrollment growth, aided by its track record of improving margins under weaker funding

** Brokerage adds this creates an "ideal" setup for Alignment, as bigger competitors focus on margins, muting competition for membership, while rates remain sufficient for Alignment to see margin improvement as newer cohorts mature

** ALHC's ability to continue to grow more than 20% should support a clear path to closer to 400k in enrollment by 2028, it says

** Including session moves, stock up 9.3% YTD

(Reporting by Siddhi Mahatole)

((siddhi.mahatole@thomsonreuters.com))