US health insurers have seen their shares surge after the government announced a better-than-expected 2026 payment increase for Medicare Advantage plans. The Centers for Medicare and Medicaid Services (CMS) stated that final rates are expected to rise more than 5% in 2026, exceeding initial projections.
Analysts at Leerink Partners and BTIG expressed confidence in the move, attributing it to a Republican administration’s favor towards private-run Medicare Advantage plans. BTIG analyst David Larsen noted that the higher rate may account for increased care use among the program’s beneficiaries. The increase is expected to cost taxpayers an additional $25 billion next year.
UnitedHealth Group and Humana, the two largest Medicare Advantage providers, saw their shares jump over 7% and 12%, respectively. Other health insurance stocks also gained ground as part of a broader market rebound.
Source: https://apnews.com/article/unitedhealth-humana-medicare-advantage-2026-rates-fa63b549d1859e4edbd7c3545b9ad2f4