Why UNH, CVS and HUM Are Advancing Today

The shares of UnitedHealth (UNH), CVS (CVS) and Humana (HUM) are climbing about 3.2%, 4% and 6%, respectively, today after the Biden administration on Friday proposed significantly raising the amount that the government pays to insurers who offer Medicare Advantage plans.

UnitedHealth, CVS and Humana provide Medicare beneficiaries with those plans.

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The Details of the Proposal

The Centers for Medicare & Medicaid Services (CMS) intends to increase its payments to insurers that offer Medicare Advantage plans by an average of 4.3% in 2026 compared with 2025.

CMS plans to accept comments on the proposal until Feb. 10.

The proposal ” continues a data-driven approach that ensures MA payment is accurate,  drives competition, and supports accountable care, shifting the focus to managing care and improving outcomes,”  CMS Deputy Administrator and Director of the Center for Medicare Meena Seshamani said in a statement.

UnitedHealth’s Upcoming Earnings Release

UNH is slated to release its fourth-quarter financial results on Thursday.

Analysts, on average, expect the insurer’s earnings per share to climb to $6.75 versus the $6.16 of EPS that it generated in Q4 of 2023.

UNH stock has fallen about 11.5% since the CEO of its UnitedHealthcare subsidiary, Brian Thompson, was tragically murdered on Dec. 4. However, the shares are up more than 10% from their recent low of $475.82 set on Dec. 17.

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Disclosure: None. This article is originally published at Insider Monkey.