UnitedHealth Stock Surges on Medicare Advantage Ratings Boost
UnitedHealth Group shares rallied more than 7% Tuesday after analysts cheered preliminary Medicare Advantage star ratings showing 78% of members in plans rated four stars or higher for 2026. The CMS rating system directly impacts insurer profitability through government bonus payments and enrollment trends.
Truist Securities raised its price target to $365, citing the favorable outlook that aligns with UnitedHealth's historical performance. The positive sentiment spilled over to peers including Elevance Health and Alignment Healthcare, with sector-wide gains reflecting confidence in managed care fundamentals.