US stocks movement | Medical insurance companies open higher collectively; Humana (HUM.US) up over 9%

Zhitong Finance APP learned that on Tuesday, medical insurance companies opened up collectively, with Hamon那 (HUM.US) up more than 9%, UnitedHealth (UNH.US) up more than 8%, CVS Health (CVS.US) up more than 5%, and CnXigo (CNC.US) up more than 2%.

On the news front, earlier the U.S. government said it plans to raise the payment rates for the 2027 U.S. Federal Medicare Advantage insurance program by a much larger margin than the market had expected. It is understood that the Centers for Medicare & Medicaid Services (CMS) said late Sunday local time that it would, on average, raise the payment level for private insurance companies offering Medicare Advantage plans for the U.S. senior population in 2027 by 2.48%, which is significantly higher than the 0.09% increase it had proposed in January. CMS said this adjustment will bring more than $13 billion in additional payment benefits to Medicare Advantage federal insurance plans in 2027.

In a recent research report, an analyst team from RBC Capital Markets said the size of this increase is clearly higher than even their most optimistic prior expectations of 1% to 1.5%. An institutional business officer from Medicare said in a call with reporters that insurance companies will also receive an additional positive catalyst of 2.5% due to an adjustment in how risk assessment payment methods linked to health conditions are handled, bringing the total increase to about 5%.