MIAMI--(BUSINESS WIRE)--CarePlus announces Medicare Advantage plan offerings for 2026. ...

Key Takeaways UnitedHealths diversification drives stability, but margins face strain from rising medical costs.Humana's benefit ratio improvement and CenterWell growth highlight stronger cost control.Humana trades at a discount to UnitedHealth, with higher earnings growth and rebound potential.In the ever-evolving health insurance landscape, UnitedHealth Group Incorporated (UNH) and Humana Inc. (HUM) stand as two dominant forces. Both companies have built resilient business models rooted in Medicare Advant ...

CHONGQING, CHINA - JULY 28: In this photo illustration, a smartphone displays the logo of Humana Inc. (NYSE: HUM), a leading American health insurance company, in front of a screen showing the company's latest stock market chart on July 28, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)Getty ImagesHumana (NYSE: HUM) is currently riding a wave of positive momentum. The stock has been on a five-day continuous winning streak, delivering cumulative gains of 13% and adding approximately ...

Valued at a market cap of $34.2 billion, Humana Inc. (HUM) is an integrated health and well-being company, primarily focused on providing managed care services through its extensive health insurance offerings. The Louisville, Kentucky-based company leverages data analytics and integrated care delivery to improve patient outcomes, enhance member experience, and reduce healthcare costs. It is scheduled to announce its fiscal Q3 earnings for 2025 before the market opens on Wednesday, Nov. 5. Ahead of this ev ...

LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana announces 2026 Medicare Advantage plans designed with veterans in mind. Humana USAA Honor Giveback Plans elevate mental health support. ...

Core Insights - Humana and Providence have initiated a collaboration focused on innovative data exchange to enhance value-based care [1] Company Overview - Humana is a leading health insurance company that aims to improve healthcare outcomes through value-based care models [1] - Providence is a comprehensive health system that seeks to leverage data to optimize patient care and operational efficiency [1] Industry Implications - The collaboration signifies a growing trend in the healthcare industry towards data-driven approaches to improve patient care and reduce costs [1] - Value-based care is becoming increasingly important as healthcare providers and insurers look to align incentives and improve overall health outcomes [1]

Group 1 - Beam Therapeutics Inc. (BEAM) has shown a year-to-date performance increase of approximately 4%, outperforming the average gain of 0.4% in the Medical sector [4] - The Zacks Consensus Estimate for BEAM's full-year earnings has risen by 1.4% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Beam Therapeutics Inc. holds a Zacks Rank of 2 (Buy), suggesting it has characteristics favorable for outperforming the market in the near term [3] Group 2 - Beam Therapeutics Inc. is part of the Medical - Biomedical and Genetics industry, which has an average gain of 8.9% year-to-date, indicating that BEAM is slightly underperforming its industry [6] - Humana (HUM) is another Medical stock that has outperformed the sector with a year-to-date increase of 5.4% and also holds a Zacks Rank of 2 (Buy) [5] - The Medical group consists of 956 companies and is currently ranked 5 in the Zacks Sector Rank, reflecting a strong overall performance [2]

Core Viewpoint - Humana Inc. faces significant revenue concerns following a legal ruling that upheld cuts to its Medicare Advantage bonus payments, which could impact billions in potential revenue [1][4][5]. Legal Challenge and Ruling - A Texas judge ruled in favor of the federal government, dismissing Humana's claims that the downgrade of its star ratings was arbitrary, based on three unsuccessful phone calls [2][3]. - Other insurers, including UnitedHealth Group, Elevance Health, and SCAN Health Plan, have successfully challenged similar legal issues in the past two years [3]. Financial Implications - Capstone estimated that approximately $3 billion in payments are at stake for Humana due to the downgrade in star ratings, which directly affect bonus payments from the federal government [4]. - In 2025, total bonus payments to insurers are projected to reach at least $12.7 billion, indicating that a downgrade in Humana's ratings could have a substantial financial impact [5]. Company Performance - In Q2, Humana reported an adjusted EPS of $6.27, down from $6.96 year-over-year, but above the consensus of $5.90, with sales of $32.39 billion exceeding the consensus of $31.89 billion [6]. - The company has updated its adjusted EPS guidance for 2025 to approximately $17 per share, up from prior guidance of $16.25, supported by solid execution and results [6][7]. - Humana's shares declined by 3.24% to $262.22 following the news [7].

Core Viewpoint - A U.S. judge has denied Humana's request to contest the 2025 ratings from the Centers for Medicare & Medicaid Services for its Medicare Advantage programs, which may result in significant financial losses for the company due to potential bonus reductions [1] Group 1 - The ruling could lead to millions in lost bonuses for Humana, impacting its financial performance [1] - The decision underscores the regulatory challenges faced by companies in the Medicare Advantage sector [1]

Core Insights - Humana's challenge against its 3.5 star rating from CMS was dismissed by a federal judge, affirming the legality of CMS's no-callbacks policy for interpreter availability tests [5][8] - Analysts predict that Humana could face a revenue loss exceeding $1 billion next year due to the impact of the star rating on bonuses and competitive positioning in the Medicare Advantage market [6] - Humana expressed disappointment with the court's ruling and indicated intentions to explore all legal options to ensure the accuracy and integrity of CMS's star ratings [7][8] Group 1 - The CMS rates Medicare Advantage plans on a 1 to 5 star scale based on various quality metrics, including the availability of foreign language interpreters [3] - Humana's initial lawsuit was dismissed because it did not exhaust administrative appeals with CMS before seeking judicial review [5] - The court's ruling means Humana cannot refile the lawsuit, although an appeal is still possible [8] Group 2 - The star ratings are crucial for Medicare Advantage plans as they directly influence revenue through bonuses and competitive advantages [6] - Humana's spokesperson emphasized the company's commitment to improving its star ratings and returning to top quartile performance [6] - The ruling reinforces the importance of consistent and accurate evaluations of Medicare Advantage plan quality for beneficiaries [7]