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CVS Health Corp. CVS, Humana, Inc. HUM and UnitedHealth Group, Inc. UNH stock is moving higher on Monday. Here&#8217;s what you <a href="https://www.benzinga.com//node/42953047">need to know</a>.



What To Know: Shares of health insurance companies are trading higher after The Centers for Medicare and Medicaid Services proposed a rise to Medicare Advantage payments.



According to <a href="https://www.bloomberg.com/news/articles/2025-01-10/us-proposes-21-billion-boost-to-insurers-for-medicare-payments?embedded-checkout=true">Bloomberg</a>, the proposal suggests an average 4.3% increase in Medicare Advantage plan payments. If the plan is adopted, it could lead to an additional $21 billion in payments for 2026 compared to the expected 2025 figures.



This follows concerns from health insurers that current rates are too low to cover medical expenses. 



"While rates in recent years have been considered insufficient" by Medicare insurers, "there is some optimism that rates could improve under a Trump CMS," said JPMorgan analyst Lisa Gill told Bloomberg.



Health insurance companies offering Medicare Advantage plans receive direct payments from the federal government to cover beneficiaries. An increase in these payments could drive higher revenue and improved margins, likely boosting investor confidence in these companies.



Notably, CVS, Humana and UnitedHealth sold more than half of the Medicare Advantage plans in 2024, as reported by KFF. Additionally, the Medicare Payment Advisory Commission noted that Medicare Advantage covered more than half of Medicare beneficiaries in 2023.



The U.S. is expected to spend $9.2 trillion over the next decade on payments to private Medicare plans.



See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42953757/whats-going-on-with-trump-media-technology-group-stock-4">What&#8217;s Going On With Trump Media &amp; Technology Group Stock?</a>



Price Action: At the time of publication, CVS stock is trading 7.43% higher at $51.56, Humana shares are trading 7.38% higher at $289.98 and UnitedHealth stock is moving 4.37% higher at $543.48, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.



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Shares of health insurance companies are trading higher after The Centers for Medicare and Medicaid Services proposed a rise to Medicare Advantage payments.