Humana +12% on 2027 Medicare Rate

Medicare finalized a 2.48% rate increase for private insurers in 2027, adding over $13 billion in Medicare Advantage payments.
Humana shares jumped ~11‑12% after hours, while UnitedHealth, CVS Health, Elevance Health, Molina and Centene also rose 4‑8%.
CMS will use the 2024 Medicare Advantage risk‑adjustment model for 2027 and exclude chart‑review diagnoses from risk scores, except for plan switches.
CMS Administrator Dr. Mehmet Oz said the updates keep Medicare Advantage and Part D affordable and valuable for beneficiaries.