Humana reaffirms outlook; announces in-line 2026 Medicare Star Ratings

Humana (NYSE:HUM) on Thursday reaffirmed its full-year earnings outlook and noted that, consistent with its expectations, roughly 1.2M, or 20%, of its Medicare Advantage members are currently enrolled in plans rated four stars and above for 2026.

As part of the Star Ratings system, the Centers for Medicare and Medicaid Services (CMS) rewards plans with four or more stars with annual bonus payments, which can be a key factor in deciding a health insurer’s financial performance.

Citing preliminary MA Star Ratings data mistakenly released by the CMS on Wednesday, the Louisville, Kentucky-based health insurer added that the company has an average MA Star rating of 3.61 for next year, in line with its 2025 data.

Additionally, Humana (NYSE:HUM) said that plans with 4.5 stars are expected to cover 14% of its members next year, up from 3% in 2025.

The company is currently contesting its 2025 Star Ratings results, which indicated a sharp decline in members enrolled in its MA plans rated four stars and above.

“While the Company is not satisfied with its 2026 Star Ratings, it is pleased with the tactical operational improvements made during the final months of the 2026 measurement period,” Humana said in a regulatory filing.

HUM also reiterated its 2025 outlook initially issued in July, noting that it continues to expect ~$13.77 in diluted earnings per share, or ~$17.00 in adjusted earnings per share, this year, compared to $17.03 in the consensus.