Shares of U.S. health insurers jumped on Tuesday after a bigger-than-expected increase in the government's reimbursement rates for Medicare Advantage plans in 2026 signaled some relief for a sector burdened with steep medical costs.

The Centers for Medicare and Medicaid Services announced higher-than-expected Medicare Advantage payment rate increases for 2026.

Shares of health insurance operators surged Tuesday after the government said it would pay a higher rate to Medicare insurers than previously estimated.