Key insights
- UnitedHealth shares jumped after hours following the finalization of a higher-than-expected Medicare Advantage rate increase by the CMS. The increased rate, projected to add $13 billion in payments by 2027, improves the profitability outlook for UnitedHealth's Medicare Advantage business, driving positive sentiment and potentially influencing other healthcare insurers.
The U.S. has finalized an average rate increase of 2.48% in payments next year, compared with the near flat proposal in January, to private insurers for the Medicare Advantage plans they manage for older adults, the government website said on Monday.
The Centers for Medicare & Medicaid Services said the new rate is projected to result in a net average increase of over $13 billion in additional Medicare Advantage payments to plans in 2027.
Any of you guys also built positions on UNH during this year-long downturn?
Things may get better from here!