Story perspectives

Humana shares jump 15% on 2027 star-rating boost

By Drooid · Oct 10, 2026, 2:10 AM UTC · How we work

Summary

Humana Gains Rating

Humana’s shares rose 15% after analysts named it a 2027 Medicare Advantage star-rating beneficiary.
Humana expects 95% of its Medicare Advantage members in four-star-or-higher plans in 2027, up from 20% in 2026.
The boost could generate roughly $4.8 billion in government bonus payments for Humana in 2028.
Evercore ISI analyst Elizabeth Anderson attributed the rating rise to better drug-plan quality, health-plan quality and readmission measures.

Summary

CMS Revises Star Methodology

CMS changed its 2027 Medicare Advantage star methodology, adding measures and raising thresholds.
A judge ruled the star methodology illegal, forcing a 2026 rating recalculation after Clover Health sued CMS.
Over 3 million seniors in terminated or departing plans must secure new coverage for 2027.
Medicare open enrollment begins Oct. 15, urging seniors to review options amid plan cuts and higher cost-sharing.

History

Historical Context

In 2015, CMS launched the Medicare Advantage Quality Bonus Payment under MACRA, tying star ratings to $2.5 billion in bonuses for four-star plans. The scheme built on earlier pay-for-performance pilots such as the 2005 Physician Group Practice demonstration and the 1997 shift to Medicare+Choice private plans. Today’s 2027 star-rating overhaul, which could award Humana $4.8 billion, mirrors that incentive structure and signals continued regulator influence.

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Humana Gains Rating

Humana’s shares rose 15% after analysts named it a 2027 Medicare Advantage star-rating beneficiary.
Humana expects 95% of its Medicare Advantage members in four-star-or-higher plans in 2027, up from 20% in 2026.
The boost could generate roughly $4.8 billion in government bonus payments for Humana in 2028.
Evercore ISI analyst Elizabeth Anderson attributed the rating rise to better drug-plan quality, health-plan quality and readmission measures.

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