Humana, UnitedHealth Group and Aetna parent CVS Health and other health insurers rallied Tuesday after the Centers for Medicare & Medicaid Services (CMS) raised Medicare Advantage payments significantly late Monday.
The Trump administration's 5.06% increase for fiscal 2026 is substantially higher than the 2.23% proposed by CMS under the Biden Administration. The Trump administration will continue a move to limit certain billing practices, with that phasing in over three years to 2026.
Humana stock spiked 10.7% to 281.95, above its 50-day line but still below its long-sliding 200-day. Humana is the health insurer most exposed to Medicare Advantage.
UnitedHealth stock gained 5.4%, pushing above its 200-day line. The Dow giant will report first-quarter results next week.
CVS Health stock jumped 5.9% to 67.63, back above a 67.34 buy point.
Elevance Heath rose .1.8%, still below its 200-day.
Cigna reversed lower, edging down 0.5%.
Centene gained 1.7%.
Late Friday, CMS announced that it would not expand Medicare and Medicaid coverage for anti-obesity drugs, a blow to Eli Lilly and Novo Nordisk. Eli Lilly stock fell 2% on Monday. Novo Nordisk stock gained 1.7% after reversing higher from a two-year low intraday.
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