US to raise Medicare Advantage payments to insurers by 2.48% in 2027, insurance stocks surge - Reuters

Reuters
April 6, 2026
2 min read

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The Bottom Line

The US will increase Medicare Advantage payments to insurers by 2.48% in 2027, causing insurance stocks to surge.

How This Affects You

This payment increase for insurers could affect the benefits and costs for over half of all Medicare beneficiaries in 2027.

AI Summary

The US will raise Medicare Advantage payments to insurers by 2.48% in 2027. This decision by the Trump administration outlines the payment rates for private plans that cover over half of all Medicare beneficiaries. The announcement immediately led to a surge in insurance stocks, reflecting investor confidence in the financial outlook for these companies. This rate adjustment is a key factor for insurers in planning their offerings and benefits for the upcoming year.

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