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2026-04-07 10:38:40
[US Government Raises Medicare Advantage Payment Rates for 2027] (1) The US government announced Monday that it will raise the average rate paid to private insurers providing Medicare Advantage by 2.48% in 2027, up from the nearly flat 0.09% adjustment in the January draft. Combined with a 2.5% gain from risk assessment adjustments, the total increase is approximately 5%. (2) Shares of UnitedHealth Group, Hammena, and CVS rose 8% to 14% in after-hours trading following the announcement of the January draft, a stark contrast to the decline. The health insurance agency said the increase will add more than $13 billion in additional payments in 2027. (3) Morningstar analysts said the rate is a relief for investors, providing insurers with a more favorable model for predicting healthcare costs in 2027. The agency also suspended adjustments to risk assessment models to give insurers and healthcare providers time to adapt to other payment changes. Health insurance industry organizations said they will continue to work to maintain affordability of coverage during a period of rapidly rising healthcare costs.
