US Stock Market Move | The US government increased funding for Medicare advantage plans, leading to a sharp increase in the stock prices of major insurance companies.

On Tuesday, after the U.S. federal government announced an increase of approximately $25 billion in funding for the Medicare Advantage plan for seniors in 2026, the stock prices of several major insurance companies offering the plan surged. Among them, Humana (HUM.US), which focuses on the health insurance market, soared over 10%; CVS Health Corporation (CVS.US) rose over 8%; and UnitedHealth Group Incorporated (UHN.US) increased by over 6.7%. The Centers for Medicare & Medicaid Services stated in a release that the funding increase was higher than previous market expectations, mainly to address the anticipated growing costs in future Medicare programs. The agency pointed out that the new payment policies ensure the continued accessibility and operational efficiency of the Medicare Advantage plan in providing essential healthcare services, while further enhancing the plan's ability to serve beneficiaries. Medicare Advantage is part of the U.S. federal Medicare program, managed by private insurance companies, providing comprehensive medical services including hospitalization, outpatient, and prescription drug coverage. The funding increase not only indicates long-term government support for the plan but also brings stable revenue expectations for related insurance companies, prompting a positive response from the stock market. Market analysts believe that as the aging trend intensifies, the number of Medicare Advantage beneficiaries will continue to expand, and insurance companies can potentially gain higher profit returns by improving service efficiency and expanding market coverage. The government's increase in funding is also seen as an endorsement of the industry's future growth potential. In the future, investors will closely monitor further developments in health insurance policies and how related insurance companies adjust their strategies to cope with rising costs and regulatory changes.