Medicare Advantage Payments to Insurers Will Rise More Than Expected

The 5.06 percent increase for 2026 is more than double the previously announced proposal in January under the Biden administration.

A certified medical assistant applies a Band-Aid after administering a vaccine at Harbor-UCLA Medical Center in Torrance, Calif., on Jan. 21, 2021. Mario Tama/Getty Images

The Centers for Medicare & Medicaid Services (CMS) announced on April 7 that it will increase Medicare Advantage payments to private insurers by 5.06 percent in 2026—more than twice the rate proposed earlier this year.

The CMS finalized the payment policy updates as part of its annual Rate Announcement for the Medicare Advantage and Part D programs.