Investing.com -- Humana (NYSE: HUM) shares rose 12% after hours Monday following the Centers for Medicare and Medicaid Services’ announcement of a 2.48% rate increase for private insurers in 2027.

UnitedHealth Group (NYSE: UNH) gained 11%, CVS Health (NYSE: CVS) climbed 9%, and Elevance Health (NYSE: ELV) jumped 5% in extended trading. Hospital stocks also advanced, with Molina Healthcare (NYSE: MOH) up 7% and Centene (NYSE: CNC) rising 4%.

The final rate represents a meaningful improvement over the initial rates the agency proposed in January.

The US Medicare program’s rate decision affects payments to private insurers that offer Medicare Advantage plans to beneficiaries.