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Health Insurance Shares Gain on 2.48% Medicare Rate Bump

Provided by Dow Jones Apr 6, 2026, 10:13:00 PM

By Katherine Hamilton

Health insurers' stocks rose after the government raised rates on Medicare Advantage programs.

In after-hours trading Monday, Humana shares climbed 11% to $203.30, CVS Health shares rose 8% to $78.81 and Elevance Health shares advanced 7% to $324.

The Centers for Medicare & Medicaid Services released new Medicare Advantage and Part D rates, which are projected to result in a net average increase of 2.48%, or more than $13 billion in additional Medicare Advantage payments to plans next year.

CMS will continue using the 2024 Medicare Advantage risk adjustment model in 2027, it said. It will evaluate public feedback as it considers future risk adjustment models.

CMS is still finalizing updates to the Part D risk adjustment model.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

April 06, 2026 18:13 ET (22:13 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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