The Centers for Medicare & Medicaid Services (CMS) finalized a 2.48% net payment increase for 2027 Medicare Advantage plans. This decision reverses a nearly flat rate proposed in January. The new rate is projected to add over $13 billion in payments to the plans.
Regulators postponed a planned overhaul of the payment calculation methodology by keeping the current risk adjustment model. This delay improves the near-term earnings outlook for UnitedHealth, Humana, CVS Health, and Elevance Health. Shares for these major insurers rose following the announcement.