A recent study reveals that the premiums for the Medicare Advantage Plans have risen to 14.2%, this year, thereby causing a trouble, especially for the 8.5 million elderly people who are already involved in these plans.

The centers for Medicare & Medicaid Services have announced a 1.38% rise in the Medicare Advantage Plans.

The increase in the premiums led to immediate rise in the shares of the two largest Medicare Advantage providers Humana and UnitedHealth Group. While Humana's shares rose by 3.2%, those of UnitedHealth gained by 1.1%, in extended training.

"We will study them for the next few days and weeks. We are going analyze the potential impact on the company with the understanding that they might change", said Tom Noland, Humana's Spokesman.

UnitedHealth's Spokesman, Matt Burns, said, "We will analyze the proposed rate structure and its potential impact on our members and their benefits".

Although the analysts have been considering it a good sign for the insurers, but the Government's plans of reducing subsidies comes out to a big concern for the companies.

At a meeting on Friday, President Barack Obama said, "All we've been saying is let's make sure that there's a competitive bidding process and that we are getting the absolute best bargain".