UnitedHealth Group Stock Surges 5.41% with $65.81 Billion Trading Volume Ranking 10th in Market Activity

On April 8, 2025, UnitedHealth Group (UNH) saw a significant surge in its stock price, rising by 5.41%. The trading volume for the day was substantial, reaching $65.81 billion, marking a 71.68% increase from the previous day and placing it as the 10th highest in the day's market activity.

The surge in UnitedHealth's stock price can be attributed to the Centers for Medicare & Medicaid Services (CMS) finalizing a significant increase in 2026 Medicare Advantage payments. The average rate hike of 5.06% is more than double the initially proposed 2.23%, potentially adding $25 billion in funding to US health insurers. This increase is particularly beneficial for UnitedHealth, which administers approximately 29% of the Medicare Advantage pool, making it the largest provider in this sector.

This rate hike is part of a broader trend where certain government sectors are seeing increased funding. Despite cuts in other areas, the healthcare sector, particularly Medicare Advantage, is experiencing a significant boost. This aligns with the growing popularity of Medicare Advantage plans, which 54% of Medicare enrollees in 2024 had signed up for, contributing to about $84 billion in additional government spending compared with traditional Medicare plans.

UnitedHealth's stock performance has been on an upward trend since its lows in February, with Tuesday's surge potentially indicating a profitable moment for investors. However, the stock's Relative Strength Index (RSI) at 71 suggests it is overbought, which could lead to a correction if the market experiences a sell-off. Over the longer term, a break above the former resistance point at $608 would be a bullish sign for the stock.