Health insurers rally after government lays out better-than-expected Medicare Advantage raise

The Associated Press

Tue, Apr 8, 2025, 6:00 AM 1 min read

Shares of large wellness insurers jumped aboriginal Tuesday aft the national authorities announced a better-than-expected 2026 outgo summation for Medicare Advantage plans.

The Centers for Medicare and Medicaid Services said Monday aft markets closed that last rates are expected to summation much than 5% successful 2026.

That coiled up good supra expectations, Leerink Partners expert Whit Mayo said successful a probe note.

BTIG expert David Larsen said separately that the last summation much than doubled what was initially projected successful January. He added that it apt accounts for higher attraction usage that the programme has seen recently.

Larsen besides credited the caller medication of President Donald Trump.

“The higher wide last complaint is successful enactment with our presumption that Republican administrations are mostly much (Medicare Advantage)-friendly,” Larsen wrote. “While fraud, waste, and maltreatment are surely a absorption of the caller administration, we presumption the last complaint announcement arsenic a affirmative surprise.”

Medicare Advantage plans are privately-run versions of the government-funded Medicare programme mostly for radical who are 65 and older.

Shares of the 2 largest Medicare Advantage program providers, UnitedHealth Group Inc. and Humana Inc., climbed much than 7% and 14%, respectively, earlier markets opened Tuesday. Other security stocks similar Elevance Health Inc. and Centene Corp. besides jumped.

The wellness assemblage was among the biggest gainers successful a broader marketplace rebound aboriginal Tuesday.