UNH vs. HUM: Which Insurance Stock Offers Greater Potential Following CMS's Reversal of Wall Street's Major Medicare Rate Concern?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Source: stocktwits
Medicare Advantage Funding Increase: A revised policy is set to add over $13 billion in funding to Medicare Advantage plans, following a previous proposal that significantly impacted insurers' market value.
Stock Performance: Shares of UnitedHealth (UNH) rose by 8% and Humana (HUM) gained 11% after the announcement, although both stocks have seen declines of approximately 45% and 27% respectively over the past year.
Payment Rate Adjustments: The Centers for Medicare & Medicaid Services (CMS) finalized a 2.48% increase in Medicare Advantage payment rates for 2027, reversing earlier proposals that kept rates flat.
Market Sentiment: Retail sentiment for UNH and HUM remains bullish, with analysts providing a range of ratings, indicating a strong outlook for UnitedHealth's expanding AI strategy and potential revenue relief amidst rising medical costs.
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Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 370.750
Low
330.00
Averages
397.82
High
444.00
Current: 370.750
Low
330.00
Averages
397.82
High
444.00
About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health provides comprehensive and patient-centered care, addressing the physical, mental, and social well-being. Optum Health delivers primary, specialty and surgical care and helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Growth Potential: By focusing on margins, UnitedHealth may achieve sustainable growth in the future, reinforcing its leadership in the healthcare sector.
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- Approval Process Simplification: UnitedHealth plans to eliminate the requirement for doctors to obtain approvals for various procedures, tests, and services, which is expected to reduce review numbers by nearly a third, thereby alleviating burdens on both physicians and patients while enhancing healthcare service efficiency.
- Reduction in Review Volume: Currently, about 2% of claims require prior approval, which, while seemingly low, still translates to millions of reviews annually; streamlining this process will help expedite patient treatment timelines significantly.
- Positive Physician Feedback: Physicians have long expressed dissatisfaction with the cumbersome approval process, citing delays and denials in treatment; this initiative by UnitedHealth is likely to improve doctor-patient relationships and enhance patient satisfaction levels.
- Market Reaction Anticipation: This policy change could positively impact UnitedHealth's operational efficiency, further solidifying its leadership position in the U.S. health insurance market, while also potentially influencing its future financial performance.
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- Industry Positioning: Currently, only 2% of UnitedHealthcare's medical services require prior authorization, with approximately 92% of submitted requests approved within 24 hours, which strengthens its competitive edge in the market.
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