Health Insurers Rally Led by UnitedHealth (UNH), Humana (HUM) Buckles Under Regulatory Pressure
UnitedHealth Group (UNH) surged nearly 9% on Tuesday—its second-largest daily gain this year—after signaling strong Medicare Advantage performance. The rally pared its year-to-date losses to approximately 30%. Sector peers Centene (CNC), CVS Health (CVS), and Clover Health (CLOV) climbed between 1.6% and 7.7% on the momentum.
Humana (HUM) defied the trend, plummeting 12% as Leerink Partners analysts flagged potential regulatory headwinds. The insurer faces heightened Medicare evaluation standards in 2026 and is contesting prior ratings through litigation. UnitedHealth's outlook brightened with 78% of its Medicare Advantage members projected for four-star-plus plans in 2026—a threshold triggering CMS bonus payments and attracting senior enrollees.
