Humana's Shares Rise After Outperforming Medicare Star Ratings for 2027
Humana’s shares surged by 15% on Friday after analysts highlighted the company as a top beneficiary of improved star ratings in 2027 Medicare Advantage plans. The health insurer reported that 95% of its members will be enrolled in four-star or higher-rated plans, far exceeding expectations and outperforming larger rivals like UnitedHealth Group (UNH) and CVS Health (CVS). This improvement is expected to result in significant bonus payments from the U.S. government. The boost comes after a challenging period for Humana due to poor 2025 ratings that threatened its financial performance, including losing a lawsuit over rating calculations and forecasting below-estimate profits in early 2026. Analysts attributed the recent turnaround to improvements in drug-plan quality, health-plan quality, and reduced readmissions. Humana could receive up to $4.8 billion in bonus payments by 2028 as a result of its improved ratings. The company is one of the largest providers of Medicare Advantage plans for seniors and people with disabilities.
Topics: Financial Performance Healthcare Insurance Regulatory Changes