Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

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The Trump administration on Monday finalized a 2027 payment rate increase to privately run Medicare plans that was far bigger than initially proposed, a boost to health insurer stocks.

The government will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027, according to a release from the Centers for Medicare & Medicaid Services. The Trump administration in January proposed a payment rate hike of 0.09%, which pummeled shares of insurers that run those plans.

Shares of UnitedHealth

and CVS Health