Humana Inc. (NYSE: HUM) said Friday that its 2027 Medicare Advantage Star Ratings improved significantly, with 95% of members enrolled in plans earning at least four stars from the Centers for Medicare and Medicaid Services (CMS).
Additionally, 42% of its Medicare Advantage members are enrolled in plans rated 4.5 stars or higher, reflecting broad improvements across its portfolio.
The stronger ratings helped Humana exceed its top-quartile performance goal. The health insurer also reaffirmed its full-year 2026 adjusted earnings outlook.
Operational Enhancements Drive Better Health Outcomes
Compared with the prior year, Humana met 663,000 additional care opportunities, while 534,000 more members completed annual preventive visits.
“We’re extremely proud of these Star Ratings. They’re a direct reflection of the hard work that thousands of Humana employees put in every day, helping members get the high-quality care and coordinated support they need to achieve their best health,” said Jim Rechtin, Humana CEO.
Humana secured six Medicare Advantage contracts with a 4.5-star distinction and 12 contracts with a 4.0-star rating for 2027, representing an addition of 11 contracts at or above 4.0 stars compared to the prior year.
Humana Long-Term Outlook and 2028 Shareholder Capital Strategy
In an SEC filing on Friday, the company said it expects a benefit for 2028 that will be utilized for one-time investments and return to shareholders.
Humana will share more on the level of and expected use of the one-time benefit once it has more 2028 information, including insight into competitive dynamics and the rate and regulatory environment, along with a view of its expected contract mix and membership size and mix.
The company believes it is well positioned to deliver on its commitment of unlocking the earnings potential of the business by 2028.
The company reaffirmed its fiscal 2026 adjusted earnings guidance of at least $9 per share, compared with the consensus estimate of $9.15.
HUM Price Action: Humana shares were up 16.09% at $449.41 during premarket trading on Friday. The stock is trading at a new 52-week high, according to market data.
