Shares of major health insurers jumped Tuesday after the federal government announced a better-than-expected 2026 payment increase for Medicare Advantage plans. The Centers for Medicare and Medicaid Services said Monday after markets closed that final rates are expected to increase more than 5% in 2026.

Shares of U.S. health insurers jumped on Tuesday after a bigger-than-expected increase in the government's reimbursement rates for Medicare Advantage plans in 2026 signaled some relief for a sector burdened with steep medical costs.

An increase in the average reimbursement rate means insurers will receive more funding per Medicare Advantage plan recipient and the insurers that offer these plan