Shares of health insurers up after UnitedHealth expects majority members in top-rated Medicare plans in 2026; UnitedHealth up 3.2%, CVS Health up 1.7%, Elevance up 1%

Shares of health insurers up after UnitedHealth expects majority members in top-rated Medicare plans in 2026; UnitedHealth up 3.2%, CVS Health up 1.7%, Elevance up 1%

Shares of major health insurers experienced notable gains today as UnitedHealth Group (NYSE: UNH) announced that it expects the majority of its Medicare Advantage (MA) members to be enrolled in plans rated four stars or above for the 2027 Payment Year. UnitedHealth’s stock rose by approximately 3.2% in premarket trading following the news.

UnitedHealth’s announcement is based on preliminary data from the Centers for Medicare & Medicaid Services (CMS) that indicates roughly 78% of its Medicare Advantage membership could be enrolled in highly rated plans. The CMS Star Ratings system rewards healthcare plans with four or more stars with annual bonus payments, with higher ratings entitling plans to higher bonuses. The company’s projection aligns with its previous estimates and historical results, as noted in a regulatory filing on Tuesday .

This positive development comes as UnitedHealth reaffirmed its adjusted earnings per share forecast for 2025, which it had initially issued on July 29. The company expects adjusted earnings of at least $16.00 per share with revenue in the range of $445.5 billion to $448.0 billion, slightly below current Wall Street forecasts .

The positive sentiment surrounding UnitedHealth’s performance has also spilled over to other health insurers. CVS Health (NYSE: CVS) and Elevance Health (NYSE: ELEV) saw their stocks rise by 1.7% and 1%, respectively, as investors reacted favorably to the news.

Investors will gain further insights into UnitedHealth's plans and financial outlook during its upcoming meetings with analysts and shareholders later this week.

References:
https://seekingalpha.com/news/4493298-unitedhealth-rises-medicare-star-ratings-update
https://ca.finance.yahoo.com/news/unitedhealth-unh-shares-rise-reaffirmed-163052711.html