 According to a recent article on Marca.com, Medicare Advantage users have good news: payments to these plans are jumping 5.06% in 2026, more than double the originally proposed 2.23% increase announced in January.
Why the Big Increase? The Centers for Medicare & Medicaid Services (CMS) cited updated data as the primary driver. Fresh fee-for-service payment data through Q4 2024 pushed the effective growth rate from 5.93% to 9.04%, reflecting rising healthcare expenses. This $25+ billion windfall for insurers represents the largest benchmark increase in a decade and marks the first major Medicare move under the Trump administration, contrasting with the Biden era's tighter 0.2% decrease for 2025. Industry Impact Major insurers like UnitedHealth and Humana will decide how these funds affect premiums and benefits for beneficiaries. Humana's stock soared 11.5% after the announcement, showing Wall Street's confidence. The Better Medicare Alliance praised the decision, calling it protection for seniors and full funding for Medicare Advantage. What It Means With $9.2 trillion projected for Medicare Advantage over the next decade and over 32 million of the 65 million Medicare beneficiaries enrolled in MA plans, this increase could significantly impact plan options and out-of-pocket costs in 2026. CMS also finalized a three-year risk adjustment phase-in to improve payment accuracy and prevent over-coding. Comments are closed.
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