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.

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.

Centers for Medicare & Medicaid Services (CMS), which oversees Medicare and Medicaid programs, said Tuesday that payments from the federal government to Medicare Advantage plans would increase by 5.06% in its 2026 calendar year, more than double what it proposed in January.