Medicare Advantage Payment Cuts Softened and Delayed by US Government

The US government has announced a lower than expected 1.1% average cut of 2024 reimbursement rates for health insurers that offer coverage through the Medicare Advantage program, boosting shares of the market's largest players. The U.S. Centers for Medicare and Medicaid (CMS) said it expected total payments for next year to rise by 3.3% from 2023, or around $13.8 billion, up from its 1% initial estimate, and reduced drops on some costs resulting from rule changes. UnitedHealth Group Inc and Humana Inc shares were up more than 2% in after-market trade.