Quant check on insurer stocks as Medicare Advantage rate boost drives gains

[Medicare Advantage]
All_About_Najmi/iStock via Getty Images

As the Centers for Medicare & Medicaid Services announced that the average Medicare Advantage payments will be boosted by 2.48% in 2027 [https://seekingalpha.com/news/4572839-insurance-stocks-jump-on-medicare-advantage-rate-boost-humana-unitedhealth-lead-gains], major healthcare insurers sharply moved higher in after-hours trading on Monday.

The CMS payment rate is closely watched by the market and dictates how much insurers can charge for monthly premiums and benefits, directly influencing their profitability. Previously in January, the administration had proposed a much smaller 0.09% hike, which had pressured insurers’ stocks.

With a shift in sentiment translating to stock levels, Quant ratings provide a snapshot of which insurance provider names are screening strongest.

Here is the list:

*
HealthEquity (HQY [https://seekingalpha.com/symbol/HQY]), Quant Rating: 3.57 [https://seekingalpha.com/symbol/HQY/ratings/quant-ratings]

*
Centene Corporation (CNC [https://seekingalpha.com/symbol/CNC]), Quant Rating: 3.38 [https://seekingalpha.com/symbol/CNC/ratings/quant-ratings] (up 4.3% after-hours on Monday)

*
Alignment Healthcare (ALHC [https://seekingalpha.com/symbol/ALHC]), Quant Rating: 3.30 [https://seekingalpha.com/symbol/ALHC/ratings/quant-ratings](up 12.5% after-hours on Monday)

*
UnitedHealth Group (UNH [https://seekingalpha.com/symbol/UNH]) , Quant Rating: 3.32 [https://seekingalpha.com/symbol/UNH/ratings/quant-ratings] (up 7.8% after-hours on Monday)

*
Progyny (PGNY [https://seekingalpha.com/symbol/PGNY]), Quant Rating: 3.08 [https://seekingalpha.com/symbol/PGNY/ratings/quant-ratings] (up 1.1% after-hours on Monday)

*
Elevance Health (ELV [https://seekingalpha.com/symbol/ELV]), Quant Rating: 2.97 [https://seekingalpha.com/symbol/ELV/ratings/quant-ratings] (up 6.7% after-hours on Monday)

*
Humana (HUM [https://seekingalpha.com/symbol/HUM]), Quant Rating: 2.78 [https://seekingalpha.com/symbol/HUM/ratings/quant-ratings] (up 11% after-hours on Monday)

*
Molina Healthcare (MOH [https://seekingalpha.com/symbol/MOH]), Quant Rating: 2.61 [https://seekingalpha.com/symbol/MOH/ratings/quant-ratings] (up 3.8% after-hours on Monday)

ETFs to track: (IXJ [https://seekingalpha.com/symbol/IXJ]), (VHT [https://seekingalpha.com/symbol/VHT]), (XBI [https://seekingalpha.com/symbol/XBI]), (XLV [https://seekingalpha.com/symbol/XLV]), (RSPH [https://seekingalpha.com/symbol/RSPH]), (KIE [https://seekingalpha.com/symbol/KIE]), (IAK [https://seekingalpha.com/symbol/IAK]).

MORE ON INSURERS

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* The Quiet Turnaround In UnitedHealth [https://seekingalpha.com/article/4888080-the-quiet-turnaround-in-unitedhealth]
* AGI Bust, AI Boom: Why AI's Winners And Losers Aren't Who You Think [https://seekingalpha.com/article/4886470-agi-bust-ai-boom-why-ais-winners-and-losers-arent-who-you-think]
* Insurance stocks jump on Medicare Advantage rate boost: Humana, UnitedHealth, lead gains [https://seekingalpha.com/news/4572839-insurance-stocks-jump-on-medicare-advantage-rate-boost-humana-unitedhealth-lead-gains]
* Insurers to receive extra $18B as Medicare overhauls Star Ratings system [https://seekingalpha.com/news/4572522-insurers-win-extra-18b-from-star-ratings-changes]