Humana Shares Surge 15% After Medicare Star Rating Recovery
Humana shares rose 15% after the company secured four-star ratings for 95% of its 2027 Medicare Advantage plans, reinstating eligibility for federal bonus payments.
Shares of Humana Inc. surged approximately 15% on October 9, 2026, after the company emerged as the primary beneficiary of the 2027 Medicare Advantage Star Ratings. The ratings, issued by the U.S. health department, revealed that 95% of Humana members will be enrolled in plans rated four stars or higher in 2027, a sharp increase from only 20% in 2026.
This recovery includes the company's flagship H5216 contract, which improved from 3.5 to 4 stars. The improvement reinstates Humana's eligibility for federal quality bonus payments, which Evercore ISI estimates could reach $4.8 billion by 2028. This turnaround follows a period of significant pressure caused by a steep drop in 2025 ratings and a lost lawsuit regarding rating calculations.
While Humana saw gains, competitors UnitedHealth Group Incorporated and CVS Pharmacy are expected to see their shares of high-rated enrollments decline to approximately 67% and 70%, respectively. Beyond the federal ratings, Humana recently secured a new Illinois Medicaid contract and a network agreement across 24 states.
