The Trump administration’s approach to Medicare Advantage so far: 5 things to know 

The Trump administration has boosted payment rates for Medicare Advantage plans, but some insurers have said the rates are not enough to offset lower rate increases over the past few years. 

In April, CMS said plans can expect a payment increase of 5.06% in 2026. The increase is higher than the 3.32% plans received in 2024 and the 3.7% they received in 2023. 

On an April 22 earnings call, Elevance Health CFO Mark Kaye told investors the increase is “more reflective of actual trends, but doesn’t fully restore the impact of prior underfunding.” 

Here are five things to know about the Trump administration’s approach to Medicare Advantage so far, and how insurers are responding: 

1. The Trump administration’s final rate notice for 2026 keeps in place the three-year phase in of risk adjustment changes from the v24 to v28 model. Many payers have decried the model, saying it amounts to a pay cut for MA plans.
   
   
2. UnitedHealth Group CEO Andrew Witty called the transition an “aggressive price cutting regime.” The insurer lowered its earnings guidance for 2025 based on challenges in its Medicare Advantage and Optum Health businesses.
   
   Still, Mr. Witty said UnitedHealth Group was “pleased” to see the increased rate notice for 2026.
   
   
3. Centene CEO Sarah London told investors the new rates “better reflect the medical cost trend we’ve seen in MA over the last two years.”
   
   “There will still be gaps to close between rate and cost across certain geographies, but this step forward was important as we look to deliver value benefits to seniors and return our business to breakeven in 2027,” Ms. London said on an April 25 earnings call.
   
   
4. CMS also published the final rule for Medicare Advantage and Part D plans in April. The agency included measures to streamline prior authorization and increase oversight of supplemental benefits. CMS did not move forward with the Biden administration’s proposal to cover GLP-1 drugs for weight loss under Medicare and did not finalize rules to place guardrails around how plans can use AI in prior authorization decisions.
   
   
5. As part of the final rule, CMS rebranded the health equity index reward program. Beginning in 2027, the program will be called Excellent Health Outcomes for All. The change “better captures the goal of ensuring exceptional care for all enrollees,” the agency wrote in its 2026 final rate notice.