Health insurer stocks are surging after the market close on Monday, following the Centers for Medicare and Medicaid Services (CMS) finalized payment policies for 2027.
- CVS Health stock is showing exceptional strength. What’s behind CVS gains?
Health Insurer Stocks Rise After The Bell
The CMS released the 2027 Medicare Advantage (MA) and Part D rate announcement after the close on Monday, projecting a net average increase of 2.48% next year.
Shares of CVS Health Corp (NYSE:CVS), UnitedHealth Group Inc (NYSE:UNH), Humana Inc (NYSE:HUM) and Elevance Health Inc (NYSE:ELV) all moved significantly higher after the announcement.
The anticipated increase includes consideration of the various elements that impact MA payments, including growth rates of underlying costs, 2026 Star Ratings for 2027 quality bonus payments, and risk adjustment updates.
"Medicare Advantage and Part D should work for the people who rely on them," said CMS Administrator Mehmet Oz. "These updates keep coverage affordable and ensure patients get real value from their plans."
Here’s a look at the after-hours price action of the aforementioned tickers at the time of publication on Monday:
- CVS: up 9.48% at $80.22
- UNH: up 9.34% at $307.72
- HUM: up 11.58% at $203.80
- ELV: up 5.83% at $320.25
Image: Shutterstock.com
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