health

Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

The Trump administration will increase average Medicare Advantage payments by 2.48%, or more than $13 billion, in 2027.

Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

TL;DR

  • The Trump administration increased average Medicare Advantage payments by 2.48% for 2027.
  • This increase represents over $13 billion and is much larger than the initially proposed 0.09%.
  • The decision positively impacted health insurer stocks, with UnitedHealth, CVS Health, and Humana seeing notable gains.
  • Medicare Advantage plans are privately run insurance options for Medicare beneficiaries, often offering lower premiums and extra benefits.
  • More than half of Medicare beneficiaries are enrolled in Medicare Advantage plans.