Centers for Medicare & Medicaid Services Administrator Mehmet Oz speaks during an event sponsored by the Action for Progress Coalition, at the National Press Club in Washington, DC, U.S., February 2, 2026.
Al Drago | Reuters
The Trump administration on Monday finalized a payment rate increase for 2027 for private Medicare plans, much larger than initially proposed, which would boost shares of health insurers.
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 & Medicaid Services. The Trump administration proposed a 0.09% payment rate hike in January, which hit the stocks of insurers that run these plans.
Actions of UnitedHealth And CVS Health rose more than 9% after hours Monday. In the meantime, HumanShares of jumped about 12%.
“Medicare Advantage and Part D should work for the people who rely on them,” CMS Administrator Dr. Mehmet Oz said in a statement. “These updates keep coverage affordable and ensure patients get real value from their plans.”
The government’s closely monitored payment rate determines how much insurers can charge for monthly premiums and benefits for the plans they offer and, ultimately, their profits.
Medicare Advantage is a private health insurance plan underwritten by Medicare. More than half of Medicare beneficiaries are enrolled in such plans, attracted by lower monthly premiums and additional benefits not covered by traditional Medicare, according to health policy research firm KFF.