<div id="readability-page-1"><div id="ArticleBody-InlineImage-108260361"><div><div><p>Administrator for the Centers for Medicare &amp; Medicaid Services Mehmet Oz speaks during an event sponsored by the Action for Progress Coalition, at the National Press Club in Washington, D.C., U.S., Feb. 2, 2026.</p><p>Al Drago | Reuters</p></div></div></div><div><p>The Trump administration on Monday finalized a 2027 payment rate increase to privately run Medicare plans that was far bigger than initially proposed, a boost to health insurer stocks.</p><p>The government will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027, according to a release from the Centers for Medicare &amp; Medicaid Services. The Trump administration in January proposed a payment rate hike of 0.09%, which pummeled shares of insurers that run those plans. </p><p>Shares of <span id="RegularArticle-QuoteInBody-2">UnitedHealth<span><span id="-WatchlistDropdown"></span></span></span> and <span id="RegularArticle-QuoteInBody-3">CVS Health<span><span id="-WatchlistDropdown"></span></span></span> rose more than 9% in after-hours trading on Monday. Meanwhile, <span id="RegularArticle-QuoteInBody-4">Humana<span><span id="-WatchlistDropdown"></span></span></span>'s stock jumped around 12%. </p><p>&#34;Medicare Advantage and Part D should work for the people who rely on them,&#34; said CMS Administrator Dr. Mehmet Oz in a release. &#34;These updates keep coverage affordable and ensure patients get real value from their plans.&#34; </p><p>The closely watched government payment rate determines how much insurers can charge for monthly premiums and plan benefits they offer and, ultimately, their profits.</p><p>Medicare Advantage is a privately run health insurance plan contracted by Medicare. More than half of Medicare beneficiaries are enrolled in such plans, enticed by lower monthly premiums and extra benefits not covered by traditional Medicare, according to health policy research firm KFF.</p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

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<p>The Trump administration has finalized a 2.48% increase in average Medicare Advantage payments for 2027, amounting to over $13 billion. This decision, significantly higher than the initially proposed 0.09% hike, has positively impacted health insurer stocks, with shares of UnitedHealth and CVS Health rising over 9%, and Humana's stock jumping around 12%. The payment rate is crucial as it influences insurers' monthly premiums and benefits, affecting more than half of Medicare beneficiaries who rely on these plans.</p>

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Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers