US finalizes 2.48% Medicare Advantage payment hike, above near-flat January proposal
US finalizes 2.48% Medicare Advantage payment hike, above near-flat January proposal
ReutersMon, April 6, 2026 at 8:45 PM UTC
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A technician stocks the shelves of a pharmacy in this file photo in U.S., February 7, 2018. REUTERS/Bryan Woolston/File Photo
April 6 (Reuters) - The U.S. has finalized an average rate increase of 2.48% in payments next year, compared with the near flat proposal in January, to private insurers for the Medicare Advantage plans they manage for older adults, the government website said on Monday.
The Centers for Medicare & Medicaid Services said the new rate is projected to result in a net average increase of over $13 billion in additional Medicare Advantage payments to plans in 2027.
The final rate comes as a relief for insurers, including UnitedHealth, Humana and CVS, which had lost billions in market value after the Trump administration proposed a much smaller-than-expected rate increase of 0.09% for 2027 Medicare Advantage plans in January.
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UnitedHealth and CVS have broader business lines that can help buffer Medicare Advantage volatility, while Humana remains more concentrated in the plans for older adults.
Shares of UnitedHealth, CVS and Humana rose between 8% and 14% in extended trading.
(Reporting by Sriparna Roy and Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila)
Source: “AOL Money”
