By Catherine Dunn

Major insurers that offer Medicare Advantage plans to seniors saw their stocks rise after hours Monday, after the federal government announced an estimated $25 billion increase in payments to the plans in 2026.

Humana's stock was up 11.9%, while shares of CVS Health were up 6.5% and UnitedHealth Group's stock rose nearly 6%.

The Health Care Select Sector SPDR Fund also saw a gain of about 1% after the market closed.

The bump in payments from the government is higher than initially expected and accounts for higher projected costs in the program, the Centers for Medicare and Medicaid Services said Monday.

Under the new payment policies for next year, the agency said it "is ensuring that Medicare Advantage continues to offer access to critical services in an efficient, accountable manner, further strengthening the program's ability to serve beneficiaries."

Write to Catherine Dunn at catherine.dunn@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 07, 2025 18:18 ET (22:18 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.