In a reversal that followed intense lobbying from the health insurance industry and members of Congress, the U.S. government said it will increase the payment rate for health insurers that offer coverage through the popular Medicare Advantage program.
The Centers for Medicare & Medicaid Services said on Monday it will increase the rate by 3.3% in 2014, reversing a 2.3% cut announced in February.
The turnaround boosted shares of major health insurance companies such as Humana Inc in after-hours trading.
Medicare Advantage provides care for seniors who select to receive their Medicare benefits through private insurance plans. About 14 million Americans are enrolled in the program.