Humana shares soar as it becomes the biggest beneficiary of the 2027 Medicare star ratings.
路透社2026/10/09 11:12Reuters, October 9 – In pre-market trading on Friday, shares of Humana (stock code: HUM.N) rose by 15%. Analysts said the health insurer is set to be the biggest beneficiary of the new 2027 Medicare Advantage star ratings. Humana stated that, with improvements in healthcare quality and member experience indicators, 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher by 2027, a substantial jump from 20% in 2026 (link). JPMorgan analysts noted that they had previously projected this ratio to be between 60% and 70%. The U.S. Department of Health and Human Services uses a one- to five-star scale to rate Medicare Advantage and prescription drug plans. Higher ratings lead to government bonuses worth billions of dollars and can help attract more members. Analysts noted that Humana’s ratings performance outpaced its larger competitors: JPMorgan expects the proportion of UnitedHealth Group’s (UNH.N) plans rated four stars or higher to decrease from 81% to about 67%, while CVS Health’s (CVS.N) ratio will fall from 84% to about 70%. The U.S. Department of Health and Human Services said Thursday night that, overall, about 71% (link) of Medicare Advantage prescription drug plan enrollees will be in contracts rated four stars or higher in 2027. Evercore ISI analyst Elizabeth Anderson said that Humana had improved in prescription drug plan quality, health plan quality, and readmission rates. She added, “This improvement reflects management’s increased focus on these metrics over the past year.” Health insurers provide Medicare Advantage plans for the government to adults aged 65 and older and people with disabilities.
Reuters, October 9 - In pre-market trading on Friday, shares of Humana (stock code: HUM.N) rose 15%, after analysts said that the health insurer is the biggest beneficiary of the 2027 Medicare Advantage new star rating.
Humana said that as healthcare quality and member experience indicators improve, by 2027, 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher, a significant increase from just 20% in 2026 (link).
Analysts at JPMorgan said they had previously expected this ratio to be 60% to 70%.
The U.S. Department of Health and Human Services uses a one-to-five star scale to rate Medicare Advantage and prescription drug plans. Higher ratings bring government-awarded bonuses that can total tens of billions of dollars, and help boost plan enrollment.
Analysts said Humana’s ratings performance outpaced its larger competitors: JPMorgan expects UnitedHealth Group (UnitedHealth) UNH.N to see its proportion of four-star and above plans drop from 81% to about 67%, while CVS Health CVS.N will see this percentage fall from 84% to about 70%.
The U.S. Department of Health and Human Services said Thursday night that overall, about 71% (link) of Medicare Advantage prescription drug plan members will be signed up to contracts rated four stars or higher in 2027.
Evercore ISI analyst Elizabeth Anderson said that Humana improved in areas such as prescription drug plan quality, health plan quality, and readmission rates.
She said this improvement “reflects the management’s focus over the past year on improving these metrics”.
Health insurers offer Medicare Advantage on behalf of the government for adults aged 65 and older and for people with disabilities.
(To facilitate non-native English speakers, Reuters provides automated translations of its reports into several other languages. Due to possible mistakes with automation or lack of intended context, Reuters does not guarantee the accuracy of automated translation text and provides it solely for reader convenience. Reuters accepts no liability for any damages or losses arising from use of the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
EUR/USD Price Forecast: Rallies fail above 1.1200 amid high Oil prices, debt woes
The strongest growth outlook in over two years is approaching! US medical device stocks still need to endure another sluggish earnings season
The third-quarter profit growth of medical device companies is expected to be only 4.8%, but it is projected to accelerate to 13% in the first quarter of next year, marking the strongest performance in over two years. However, policy uncertainties and product recalls have dampened confidence, and the market is awaiting a recovery by 2027.
BUZZ—US Stock Market Dynamics: SpaceX, Humana, Delta Air Lines
Workspace search string for querying individual stock trends: STXBZ "Today's Outlook" newsletter: https://refini.tv/3LI4BU7 "Morning News Brief": https://refini.tv/3dKUyB8 Reuters, October 9 — On Friday, U.S. stock index futures rose as oil prices retreated due to easing concerns over Middle East supply. However, telecom stocks remained under pressure as SpaceX's acquisition of spectrum sparked competition concerns across the telecom sector. - **T-Mobile US Inc (TMUS.O):** Hot topic — European telecom stocks fell after the SpaceX spectrum deal. [nL6N45V0EH] - **Space Exploration Technologies Corp (SPCX.O):** Hot topic — Shares rose after reaching an agreement to acquire a nationwide low-band spectrum portfolio. [nL4N45V0KP] - **Humana Inc (HUM.N):** Hot topic — Shares rose after its “Medicare Advantage” rating was raised. [nL4N45V0LU] - **Definium Therapeutics Inc (DFTX.O):** Market buzz — Shares increased after JPMorgan gave its LSD-based therapy an “Overweight” rating. [nL4N45V0NH] - **UnitedHealth Group Inc (UNH.N):** Market movement — TD Cowen lowered its target price ahead of UnitedHealth’s Q3 financial report. [nL4N45V0OU] - **Newmont Corporation (NEM.N):** - **Gold Fields Ltd (GFI.N):** - **Harmony Gold Mining Company Limited (HMY.N):** - **AngloGold Ashanti Ltd (AU.N):** Market movement — Gold miners’ shares rose in line with a slight rise in gold prices driven by a weaker dollar. [nL4N45V0PG] - **Delta Air Lines Inc (DAL.N):** Market flash — Shares fell after sharply lowering full-year profit forecast. [nL4N45V0RA] - **Apple Inc (AAPL.O):** Hot topic — Shares declined amid reports of iPhone production cuts. [nL4N45V0SB] - **Crescent Energy Company (CRGY.N):** Hot topic — Shares fell after raising 1 billion USD to acquire Devon Energy. [nL6N45V0J4] (For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. As automated translations may contain errors or may not capture the necessary context, Reuters does not guarantee the accuracy of the automated translation text, which is provided solely for readers’ convenience. Reuters accepts no liability for any damage or loss caused by the use of this function.)
BlackRock trims TAG Immobilien voting rights to 6.68% from 6.81%
BlackRock cut its total TAG voting rights to 6.68% from 6.81% on Oct. 6, 2026. Equity stake rose to 5.15% from 4.71%. Positions via instruments fell to 1.54% from 2.10%. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. TAG Immobilien AG published the original content used to generate this news brief via EQS News (Ref. ID: PVR_2413388_en) on October 09, 2026, and is solely responsible for the information contained therein.
Crypto prices
More
