The Biden administration has proposed a new regulation for the Medicare Advantage industry, which marks a significant departure from its previous approaches. For 2026, the average benchmark payment to private Medicare Advantage plans will increase by 2.2%. This compares to cuts of 0.2% in 2024 and 1.1% in 2025.
The largest players in the market – UnitedHealth Group, Humana, and CVS Health – will likely benefit from this move. These three companies dominate nearly 60% of the market share. Their stocks have already reacted positively to the news: UnitedHealth’s stock rose 2.4%, Humana climbed 3.3%, and CVS gained almost 2%. The proposed increase brings a change in direction for the Medicare Advantage industry, which will be watched closely by investors and policymakers alike.
Source: https://www.statnews.com/2025/01/10/cms-medicare-advantage-rate-hike-2026-unitedhealth-humana-aetna