"The revised Medicare Advantage payment rate announcement sent health insurance stocks surging, and means that an additional $13 billion in Medicare Advantage will be made to private health insurers in 2027."
"Private insurers would get an additional 2.5% benefit in 2027 due to a change to risk assessment payments related to health status."
"An extra $13 billion funneled into their coffers means the companies will have a year of financial growth."
The Centers for Medicare & Medicaid Services announced a 2.48% increase in Medicare insurer payments for 2027, up from an expected 0.9%. This change follows lobbying from the private insurance sector. The increase translates to an additional $13 billion for private health insurers. A Medicare agency official confirmed a further 2.5% benefit due to changes in risk assessment payments. As a result, major health insurance stocks surged, reflecting investor confidence in the financial growth anticipated from these changes.
Read at Fast Company
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