Medicare 2027 Rate Hike Spurs Humana 5% Rise

Medicare finalizes a 2.48% rate increase for private insurers in 2027, adding over $13 billion in Medicare Advantage payments.
Humana shares jump 5.4% and peers UnitedHealth (+8.46%), CVS (+5.87%) and Elevance (+3.02%) on the announcement.
CMS will use the 2024 risk‑adjustment model for 2027 and exclude unlinked chart‑review diagnoses, affecting plans relying on them.
Part D risk‑adjustment model is updated to reflect Inflation Reduction Act changes and current cost data.