📈 Health insurance companies are reviving - higher Medicare Advantage reimbursements have brought strong growth!
The U.S. health insurance sector is posting strong gains today after the administration announced an unexpectedly large increase in Medicare Advantagereimbursements for 2026.+2,2 % the final increase of 5,06 %which was welcomed by the sector as a very positive boost after months of pressure from cost, regulation and public opinion.

📌 Stock development: Humana $HUM, UnitedHealth $UNH, Centene $CNC, CVS Health $CVS
The rate adjustment, which directly affects the amount of government payments to insurers administering the Medicareprogram for seniors and the medically indigent, comes as the sector struggles to stabilize margins in the wake of the pandemic. The growing number of medical procedures and surgeries following the deferred care of the covid era has increased costs and reduced profitability. This is where higher reimbursements are now bringing relief.

📉 Tough year 2024 for insurers
Health insurers have had a challenging time.
High costs of care
Low government payments
Increased public criticism following media scandals

All of these have contributed to the sector's below-average stock performance.

However, despite the overall uncertainty, some companies (e.g. Centene, CVS Health) have managed to rise in recent weeks even as the market has fallen in response to tariffs and trade uncertainty.

🧭 Important insight:
Higher reimbursements bring improved margins.
Regulatory stabilization is key for the sector. If political support remains, this could open up room for longer-term growth prospects.

However, the departure of CVS 's CFO may be a short-term risk from an internal management perspective, but investors have a different view of the company, and the stock is up more than 50 %!

So in times of uncertainty and geopolitical tension, it is these regulated and highly predictable segments of the healthcare industry that can be a stable element of a portfolio.

What is your view on the healthcare sector? Who is your winner?