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 early Tuesday after the federal government announced a better-than-expected, 2026 payment increase for Medicare Advantage plans

Health insurers that offer Medicare Advantage plans to seniors cheered a Trump administration decision announced Monday to increase federal reimbursement rates by $25 billion next year, double previous estimates.