Several big health-insurance stocks jumped in extended trading Monday after the federal government said it would pay Medicare insurers more next year than previously expected.
The Centers for Medicare & Medicaid Services said payments will increase by 5.06% on average, more than the 2.83% the government said it anticipated in January.
Payments such as these to insurers cover costs for Medicare Advantage, in which private plans are an alternative to the government-run health care program for Americans 65 and older. The government said it is increasing the payments to reflect increased costs for health care.
The news lifted several stocks in the after-hours session. Humana (HUM) was recently up 14%, while CVS Health (CVS) rose 7%. Elevance Health (ELV) climbed 8%, while UnitedHealth Group (UNH) added 6%.
Those moves followed a wild day of trading driven largely by ongoing uncertainty regarding US trade policy. The S&P 500 and Dow industrials moved lower, while the Nasdaq Composite managed a slight gain.
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