US Edition
US to raise Medicare Advantage payments to insurers by 2.48% in 2027, insurance stocks surge
CMS said the final rate will add more than $13 billion to Medicare Advantage payments and give insurers a larger cushion against rising medical costs.
- On Monday, the Centers for Medicare & Medicaid Services finalized a 2.48% average payment increase for Medicare Advantage plans in 2027, providing more than $13 billion in additional funding to private insurers.
- This finalized rate reverses the Trump administration's near-flat 0.09% January proposal, which insurers had argued failed to account for rising medical costs.
- Insurers will also receive a 2.5% benefit from a paused risk-assessment change, bringing the total estimated increase to about 5% as CMS officials allow time for provider adjustments.
- Shares of UnitedHealth, Humana, and CVS Health surged between 8% and 14% following the announcement, as Morningstar analyst Julie Utterback noted the rate provides a more favorable model for predicting medical costs.
- Annual Medicare premiums are projected to rise from roughly $2,440 today to nearly $5,000 by 2035, with estimates suggesting $450 of that increase tied to Medicare Advantage overpayments alone.
32 Articles
32 Articles
UnitedHealth Rockets 11%, Humana Climbs 9% as Medicare Advantage Rate Decision Crushes Regulatory Fears
The post UnitedHealth Rockets 11%, Humana Climbs 9% as Medicare Advantage Rate Decision Crushes Regulatory Fears appeared first on 24/7 Wall St.. Quick Read UnitedHealth Group (UNH) stock surged to $311 after the CMS finalized a 2.48% Medicare Advantage rate increase for 2027; meanwhile, shares of Humana (HUM) climbed to $198. The CMS Medicare Advantage rate decision came in above market expectations, delivering relief to managed care operato…
Health insurers rise after US lifts 2027 Medicare Advantage payment rates
U.S. health insurer stocks surged after the government announced higher-than-expected Medicare Advantage payment rates for 2027, unlocking over $13 billion in additional payouts. The move eased concerns after weak earlier proposals, with analysts expecting improved margins and renewed investor confidence across the sector amid rising medical costs.
CMS Boosts 2027 Medicare Advantage Payments
The federal government will increase payments to private Medicare insurers by 2.48 percent in 2027, far more than it initially proposed. The Centers for Medicare & Medicaid Services (CMS) said on April 6 that the finalized rate will translate into more than $13 billion in additional payments to Medicare Advantage (MA) plans next year. In January, the agency had proposed a much smaller average increase of 0.09 percent, or about $700 million. CMS …
CMS Ups Pay for Medicare Advantage Plans by 2.48% in 2027
(MedPage Today) -- The average pay increase for Medicare Advantage (MA) plans in 2027 will be 2.48%, a substantial increase from the 0.09% that the Centers for Medicare & Medicaid Services (CMS) originally proposed in January, agency officials...
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
