The Centers for Medicare and Medicaid Services released its 2027 Medicare Advantage and Part D rate announcement. The policies are projected to result in a net average increase of 2.48%, or over $13B in additional Medicare Advantage payments in 2027. “This expected increase includes consideration of the various elements that impact MA payments, such as growth rates of underlying costs, 2026 Star Ratings for 2027 quality bonus payments, and risk adjustment updates,” the agency said in a statement. The CMS will continue using the 2024 Medicare Advantage risk adjustment model for 2027. Stocks in the insurance space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH).
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