Medicare Advantage Payments Rise by $25 Billion

The U.S. government has announced a significant increase of over 5% in reimbursement rates for 2026 Medicare Advantage plans, doubling the initially proposed rate from January. This increase is expected to generate $25 billion in additional revenue for private insurers like UnitedHealth Group, CVS Health, and Humana, leading to a substantial rise in their stock prices. The Centers for Medicare & Medicaid Services (CMS) attributed the rate adjustment to newly available health spending data. This decision reflects the government's ongoing support for the Medicare Advantage program, which is crucial for insurers facing high medical costs. The move has been welcomed by industry stakeholders, who emphasize the importance of maintaining high-quality care for seniors. Meanwhile, Mehmet Oz has been confirmed as the new CMS administrator.