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.

(Reuters) -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.

Medicare Advantage plans will get a 5.06% rate increase, well above the 2.23% bump that the Biden administration proposed.