{"id":641423,"date":"2026-10-09T17:28:10","date_gmt":"2026-10-09T17:28:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/641423\/"},"modified":"2026-10-09T17:28:10","modified_gmt":"2026-10-09T17:28:10","slug":"humana-surges-after-topping-2027-medicare-star-ratings","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/641423\/","title":{"rendered":"Humana surges after topping 2027 Medicare star ratings"},"content":{"rendered":"

Signage is displayed on a Humana Inc. office building in Louisville, Kentucky, U.S., on Saturday, Feb. 2, 2019. Humana is scheduled to release earnings figures on February 6.<\/p>\n

Luke Sharrett | Bloomberg | Getty Images<\/p>\n

Humana’s<\/a> shares rose 15% on Friday after analysts named it the top beneficiary \u200bof the new star ratings for 2027 Medicare Advantage plans, marking a sharp turnaround for the health insurer.<\/p>\n

Humana said 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher in 2027, up from just 20% in 2026, and above J.P. Morgan’s expectations of 60% to 70%.<\/p>\n

Higher ratings from the U.S. health department insurers billions of dollars in bonus payments from the government.<\/p>\n

Analysts said Humana’s ratings outshine those of larger rivals: J.P. Morgan estimates UnitedHealth’s<\/a> share of enrollments in plans rated four stars or higher will fall to about 67% from 81% and that of CVS Health<\/a> to roughly 70% from 84%.<\/p>\n

Poor ratings in 2025 and 2026<\/p>\n

Humana had been under pressure since a steep drop in its 2025 ratings threatened its bonus payments. The insurer lost a lawsuit challenging how the 2025 ratings were calculated in October last year, and forecast 2026 profit below Wall Street estimates in February.<\/p>\n

Evercore ISI analyst Elizabeth Anderson attributed the sharp rise to improvements in measures of drug-plan quality, health-plan quality and readmissions. The insurer could receive $4.8 billion in bonus payments in 2028 as a result, she said.<\/p>\n

Baird analysts said the boost to profits will depend on reinvestment in member benefits and arrangements with healthcare providers.<\/p>\n

Humana is one of the largest providers of Medicare Advantage plans serving people aged 65 and older as well as people with disabilities.<\/p>\n

Overall, about 71% of Medicare Advantage prescription drug plan enrollees are in contracts that will be rated four stars or higher in 2027, the health department said late on Thursday.<\/p>\n

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Signage is displayed on a Humana Inc. office building in Louisville, Kentucky, U.S., on Saturday, Feb. 2, 2019.…\n","protected":false},"author":2,"featured_media":641424,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[2580,114,357,36210,163,2579,3986,521,36211,85,46,1579,2578,7062],"class_list":["post-641423","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-biotech-and-pharmaceuticals","tag-business","tag-business-news","tag-cvs-health-corp","tag-health","tag-health-care-industry","tag-health-insurance","tag-healthcare","tag-humana-inc","tag-il","tag-israel","tag-jpmorgan-chase-co","tag-social-issues","tag-unitedhealth-group-inc"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/641423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=641423"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/641423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/641424"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=641423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=641423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=641423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}