Humana sees 20% of its members in high-rated Medicare plans for 2026

Core Viewpoint - Humana reported that approximately 20% of its members are enrolled in Medicare Advantage plans rated 4 stars and above for 2026, which positively impacted its stock price by 3.1% to $254.68. The company also noted an increase in members in 4.5-star plans from 3% in 2025 to 14% in 2026, aligning with its expectations for the preliminary star ratings [1][2]. Group 1: Star Ratings and Financial Impact - Plans with higher star ratings result in increased government payments to insurers, potentially amounting to hundreds of millions or billions of dollars [2]. - The Centers for Medicare and Medicaid Services (CMS) assigns star ratings from one to five for Medicare Advantage plans, with five being the highest. Humana expressed dissatisfaction with its 2026 ratings but aims to achieve top quartile results for the 2027 ratings [3]. Group 2: Industry Trends and Company Outlook - The 2026 star ratings will influence insurers' revenues in 2027. Humana, along with CVS Health and UnitedHealth Group, plans to reduce Medicare Advantage offerings due to anticipated decreases in government reimbursement [4]. - Humana reaffirmed its annual adjusted profit forecast of approximately $17 per share [4].