US health insurers saw a strong recovery following a positive update to the Medicare Advantage policy, reviving investors’ confidence in the industry and ETFs tied to it. UnitedHealth Group Inc (NYSE:UNH) and Humana Inc (NYSE:HUM) stocks rose by up to 10% and 13% in after-hours trading Monday, after regulators announced a 2.48% rise in Medicare Advantage rate increases for 2027, far beyond the initial expectation and expectations. UNH and HUM had closed Monday with 1.5% and 2.7% gains and were trading nearly 8% and 9.5% higher, respectively, in the pre-market trading session, Tuesday.
The Centers for Medicare and Medicaid Services update on the Medicare Advantage program policy marks a decisive shift from a period of uncertainty surrounding the near-zero increase proposal made in January. The January proposal led to a significant decline in the stock prices of several health insurance firms and wiped out almost $100 billion in market capitalization among top insurance providers.
Medicare Reset Benefits Insurers
The Trump administration said that the updated Medicare Advantage policy made by is expected …
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