By Kelly Cloonan
Shares of big Medicare insurers climbed as the Trump administration plans to substantially increase payment rates next year.
Humana jumped 14% to trade at $290.01 on Monday in after-hours trading. CVS Health rose 7% to $68.58 and UnitedHealth Group ticked up 6% to $556.32.
The Centers for Medicare and Medicaid Services said Monday it plans to hike rates by 5.06%, over double the 2.23% increase proposed by the Biden administration in January.
The increased payment rates will generate over $25 billion in additional revenue for the industry and overshoots Wall Street estimates.
The agency said the increase in the planned payment rate reflected rising medical costs, and that more recent data had led to the steeper final rise compared with the proposal from January.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 07, 2025 17:21 ET (21:21 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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