Humana surges after topping 2027 Medicare star ratings

Humanana is actually the biggest winner of new star ratings for 2027 Medicare Advantage plans, which were announced late yesterday. Humanana said 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher in 2027. That's up sharply from 20% in 2026, thanks to the company's work to improve measures of care quality and member experience. The federal government rates Medicare Advantage and prescription drug plans on a scale of one to five stars. And higher ratings lead to bonus payments from the government that amount to billions of dollars and can boost plan enrollment. For example, Oenheimer analysts estimate roughly $3.6 billion in added revenue in 2028 for Humanana thanks to these higher ratings. Meanwhile, some rival health plans like CVS and Alignment Healthcare are in the red today after the government trimmed some star ratings for some of their plans. Scott.