The U.S. government has announced significant increases in Medicare Advantage and Part D payment rates, with a benchmark increase of 5.06% for the 2026 contract year. This decision comes as the Trump administration aims to provide a substantial boost to private Medicare plans, with total payments exceeding expectations and amounting to over $25 billion. Consequently, healthcare stocks, particularly those of leading insurers such as CVS, UnitedHealth, and Humana, have rallied. The final rule also includes updates on Medicare Advantage coverage decisions and policy changes, promoting reforms intended to lower costs and enhance access to care.