Humana’s Stock Soars After 2027 Medicare Advantage Star Rating Turnaround

On October 9, analysts identified Humana Inc. as the primary beneficiary of the CMS 2027 Medicare Advantage (MA) star ratings. The insurer announced that 95 % of its MA members will be enrolled in plans rated four stars or higher, up from 20 % in 2026. The news triggered a 15 % jump in Humana’s share price, the largest single-day gain among the major MA carriers.

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Humana’s 2025 star ratings collapsed, dropping the proportion of members in four-plus-star plans from 94 % to 25 % for the following year. The decline threatened federal quality-bonus payments and led to a lawsuit that the company lost in October 2025 over the rating methodology. The insurer subsequently forecast 2026 profit below Wall Street expectations in February 2026.

Humana shares jump 15% as 2027 Medicare Advantage ratings improve

Humana highlighted targeted outreach that increased preventive-care completions—mammograms, colorectal screenings, and diabetic eye exams—directly feeding the CMS quality measures.

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• “We intend to pursue all available administrative remedies and to litigate the measures and methodologies we believe warrant review,” — Dawn Maroney, Alignment’s president and the head of its health plan

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Analysts differ on the size of the expected bonus payment tied to the rating improvement. Evercore ISI projects a $4.8 billion boost for Humana in 2028, while TD Cowen estimates the benefit could be “$3 billion or more.” The precise amount will depend on how Humana allocates the additional funding between member benefits, provider arrangements, and earnings.

Humana shares jump 15% as 2027 Medicare Advantage ratings improve

The Medicare open-enrollment period, beginning in mid-October, will test whether Humana’s higher star ratings translate into increased enrollment and sustained market share. Analysts will watch enrollment trends and any further regulatory challenges from rivals such as Alignment.

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