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.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。