Trump administration finalizes Medicare Advantage payment rate
CNBC • • business
Key Points:
- The Trump administration finalized a 2.48% increase in Medicare Advantage payment rates for 2027, significantly higher than the initially proposed 0.09% hike.
- This adjustment will raise payments by over $13 billion, providing a substantial boost to health insurer stocks.
- Shares of major insurers UnitedHealth, CVS Health, and Humana surged between 9% and 12% in after-hours trading following the announcement.
- CMS Administrator Dr. Mehmet Oz emphasized that the updates aim to keep coverage affordable and ensure value for Medicare Advantage and Part D beneficiaries.
- Medicare Advantage plans, which cover over half of Medicare beneficiaries, offer lower premiums and additional benefits compared to traditional Medicare.
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