After the Centers for Medicare & Medicaid Services (CMS) announced the latest Medicare payment rates, UnitedHealth and Humana shares surged in after-hours trading.

The share price of a certain exchange once jumped by 9%, while another exchange saw an even more notable increase of 11%. This strong rise was mainly due to CMS announcing an adjustment to Medicare Advantage Plan payment rates. The final plan exceeded market expectations, effectively easing investors’ concerns about industry profitability pressure. This favorable news significantly boosted market sentiment towards healthcare stocks, highlighting the key impact of the policy environment on the performance outlook of major insurance companies.