business / news / / Markets Insider
UnitedHealth (NYSE:UNH) shares are climbing nearly 7% in after-hours trading, while Humana is rallying close to 12%.
CMS finalized a 2.48% average payment rate increase for Medicare Advantage plans for 2027.
KEY POINTS
- The final rate is significantly higher than the earlier proposal, easing margin concerns for insurers.
- CMS chose not to update the risk adjustment model, postponing stricter reimbursement changes.
- Every 50 basis point margin improvement in Medicare Advantage could boost UnitedHealth and Humana earnings by 3-5%.
COMPANIES
Summarized by Newsio from Markets Insider. How we summarize →