UnitedHealth Shares Rally Up to 11% as CMS Boosts Medicare Advantage by $13B
Berkshire Hathaway acquired 5.04 million UnitedHealth shares last August for about $1.6B, but its stake remains roughly flat after recent stock moves. CMS finalized a 2.48% average boost to 2026 Medicare Advantage payments, generating a $13B increase and triggering an 11% intraday share surge that closed up 9%.
1. Buffett Purchase and Stake Performance
In August, Berkshire Hathaway invested roughly $1.6 billion to acquire 5.04 million UnitedHealth shares. Despite an initial 6% jump when the stake was disclosed, the position’s market value remains near the original investment level after subsequent share declines this year.
2. CMS 2026 Medicare Advantage Rate Update
The Centers for Medicare & Medicaid Services approved a 2.48% average increase in Medicare Advantage payments for 2026, amounting to an additional $13 billion in plan revenues. This revision far exceeded prior estimates and directly drove an intraday stock surge of over 11%.
3. Recent Stock Movements and Company Outlook
Shares closed up 9% following the CMS announcement, reversing earlier modest gains tied to mixed Q1 earnings and cautious 2026 guidance. The company also navigates CEO Andrew Witty’s departure and ongoing regulatory scrutiny as public frustration with insurer costs grows.