Trump administration finalizes Medicare Advantage payment rate
Centers for Medicare and Medicaid Services Administrator Mehmet Oz speaks at an event sponsored by the Action Coalition for Progress at the National Press Club in Washington, DC, USA, February 2, 2026.
Take Drago | Reuters
The Trump administration on Monday finalized a much larger payment rate increase for privately operated Medicare plans in 2027 than originally proposed; This provided support for health insurance stocks.
The government will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027, according to a statement from the Centers for Medicare & Medicaid Services. In January, the Trump administration proposed a 0.09% increase in the payout rate, sending shares of insurance companies operating these plans into turmoil.
shares United Health And CVS Health It rose more than 9% in after-hours trading Monday. Meanwhile, HumanitarianIts shares rose nearly 12%.
CMS Director Dr. “Medicare Advantage and Part D must work for the people who rely on them,” Mehmet Oz said in a statement. “These updates keep coverage affordable and ensure patients get real value from their plans.”
The closely watched government payout rate determines how much insurance companies can charge for monthly premiums and the plan benefits they offer, and ultimately their profits.
Medicare Advantage is a privately operated health insurance plan that contracts with Medicare. More than half of Medicare beneficiaries are enrolled in such plans, lured by lower monthly premiums and extra benefits not covered by traditional Medicare, according to health policy research firm KFF.
