Why it matters
- Humana said 95% of its Medicare Advantage members are in plans rated 4 stars or higher for 2027, up from 20% in 2026, and 42% are in 4.5-star plans.
- J.P. Morgan analysts had expected 60% to 70%, and estimated that UnitedHealth and CVS Health both saw their 4-star shares fall, Reuters reported.
- Humana shares traded about 16% higher before the bell on Friday, Oct. 9, according to Yahoo Finance data. The company affirmed 2026 adjusted EPS of at least $9.00.
Updated Oct. 9: Humana shares closed at $431.87 on Friday, up $44.75, or 11.6%, from Thursday's close of $387.12, according to Yahoo Finance data.
Humana shares jumped about 16% in premarket trading on Friday, Oct. 9, after the health insurer said 95% of its Medicare Advantage members are enrolled in plans rated 4 stars or higher for 2027. That is up from 20% in 2026, according to Reuters.
The stock traded at about $450.19 at 8:51 a.m. ET, up 16.3% from Thursday's close of $387.12, according to Yahoo Finance data. Reuters reported a 15% premarket gain earlier in the morning and said analysts called Humana the biggest beneficiary of the new ratings.
What did Humana announce?
The Centers for Medicare and Medicaid Services (CMS) gave insurers the final 2027 Star Ratings data on Oct. 8, Humana said in a filing with the SEC. In its press release, as published by StockTitan, Humana said:
- 95% of its Medicare Advantage members are in plans rated 4.0 stars or above.
- 42% of members are in 4.5-star plans.
- Six Medicare Advantage contracts earned 4.5 stars and 12 earned 4.0 stars, 11 more contracts at 4.0 or above than a year earlier.
- Its standalone prescription drug plan contract, S5884, earned 4.5 stars.
"We're extremely proud of these Star Ratings," Chief Executive Jim Rechtin said in the release.
Why do Medicare star ratings matter for Humana stock?
Star ratings decide bonus payments. Plans rated 4 stars or higher earn government bonus payments worth billions of dollars and can attract more members, Reuters reported. The 2027 ratings set payments for the 2028 bonus year.
In its SEC filing, Humana said it exceeded its goal of "Top Quartile" results. A chart in the filing put Humana's average stars revenue at about $160 per member per month, against about $115 for the top-quartile mark and $105 for the industry median. Humana said part of that outperformance will be one-time and that it expects a 2028 benefit to be used for one-time investments and returns to shareholders.
How did rivals do?
| Insurer | Share of members in 4-star-plus plans |
|---|---|
| Humana | 95% for 2027, from 20% (company) |
| UnitedHealth | about 67%, from 81% (J.P. Morgan estimate) |
| CVS Health | about 70%, from 84% (J.P. Morgan estimate) |
Source: Reuters, Humana.
The health department said late Thursday that about 71% of Medicare Advantage prescription drug plan enrollees are in contracts rated 4 stars or higher for 2027, Reuters reported. Evercore ISI analyst Elizabeth Anderson said Humana improved on drug-plan quality, health-plan quality and readmissions, according to Reuters.
What about Humana's guidance?
Humana affirmed its forecast for 2026 adjusted earnings of at least $9.00 a share, the filing said. It plans a virtual investor update on Dec. 10, 2026. Medicare's annual enrollment period runs Oct. 15 through Dec. 7.
Also on Friday morning, Delta Air Lines cut its 2026 profit forecast on high fuel costs. More company news is in our companies section, and the wider tape is in markets.
Sources
- Reuters, via Investing.com, Humana surges after emerging as top beneficiary of 2027 Medicare star ratings (Oct. 9, 2026)
- Humana, Form 8-K on 2027 Medicare Advantage Star Ratings (Oct. 9, 2026)
- Humana press release, via StockTitan, Humana announces improved CMS Star Ratings (Oct. 9, 2026)
- Yahoo Finance, Humana (HUM) chart data
