Shares of health insurance operators surged Tuesday after the government said it would pay a higher rate to Medicare insurers than prev🐬iously ⛎estimated. 

Humana (HUM) shares jumped over 9% in recent trading and UnitedHealth Group (UNH) rose 6%. CVS (CVS), which owns Aetna, climbed about 8%. 

The Centers for Medicare & Medicaid Services said Monday that payments to Medicare advantage plans will increase more than 5% on average, above the 2.83% the government said it anticipated in January. That increase “should ease some of the funding pressure” the insurance companies face, UBS analysts said.

Humana could now have an “easier path” to return to hitting margin targets, UBS said. UnitedH🌱ealth, which is operating at target margins already, could gain more flexibility to drive enrollment grow🍬th, the analysts added. 

For CVS, this also comes as the Aetna parent said it now expects to 澳洲幸运5官方开奖结果体彩网:meet or exceed its previous full-year earnings outlook.