Humana Shares Jump 15% as Insurer Emerges as Top Beneficiary of 2027 Medicare Star Ratings

Humana shares rose 15% in premarket trading on Friday after analysts said the health insurer is the biggest beneficiary of new star ratings for 2027 Medicare Advantage plans. Humana said 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher in 2027, up sharply from 20% in 2026, as care quality and member experience measures improved. Analysts at J.P. Morgan had expected 60% to 70%. The US health department rates Medicare Advantage and prescription drug plans on a one-to-five-star scale. Higher ratings drive billions of dollars in government bonus payments and boost plan enrollment. Analysts say Humana's ratings outshine larger rivals. J.P. Morgan estimates UnitedHealth's share of plans rated four stars or higher will fall to about 67% from 81%, and CVS Health's to roughly 70% from 84%. Overall, about 71% of Medicare Advantage prescription drug plan enrollees are in contracts rated four stars or higher in 2027, the health department said late Thursday.