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Several large health-insurance stocks rose in extended trading on Sunday after the federal said it would be paying Medicare insurers more than expected next year.
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.
Medicare Advantage is a private plan that offers an alternative to the government run health care program for Americans over 65. The government says it is increasing payments in order to reflect rising health care costs.
News of the news boosted several stocks after-hours. Humana’s (HUM) stock rose 14% in recent days, while CVS Health’s (CVS) stock rose 7%. Elevance Health climbed 8% while UnitedHealth Group (UNH), added 6%.
These moves came after a volatile trading day, largely driven by the uncertainty surrounding US trade policy. The S&P 500 and Dow industrials moved lower, while the Nasdaq Composite managed a slight gain.
