Medicare Advantage Plans See Rate Increase; Insurer Stocks Surge

Shares of major health insurers rose significantly after the federal government announced higher-than-anticipated payment increases for Medicare Advantage plans. The Centers for Medicare and Medicaid Services revealed that rates are projected to increase by more than 5% in 2026, which comes as good news for health insurers. This announcement may lead to increased financial stability for these companies and improved options for Medicare beneficiaries. Investors responded positively, reflecting confidence in the health insurance market as a result of this favorable news.