Humana jumps 14.4% on Medicare ratings

• Humana (NYSE:HUM) shares jumped 14.4% to $443 in premarket trading after U.S. government data showed stronger 2027 Medicare Advantage star ratings.
• About 95% of Humana members are enrolled in plans rated four stars or higher for 2027.
• Oppenheimer estimated the improved ratings could add about $3.6 billion in revenue, while several major rivals posted weaker average ratings.

Humana (NYSE:HUM) shares jumped 14.4% to $443 in premarket trading after U.S. government data showed 95% of its members were in Medicare Advantage plans rated four stars or higher for 2027.

Higher Medicare Advantage star ratings can qualify insurers for government bonus payments and can also affect enrollment as consumers compare available plans.

Oppenheimer estimated that Humana’s improved ratings could add approximately $3.6 billion in revenue.

The brokerage said average ratings for UnitedHealth Group (NYSE:UNH) and CVS Health (NYSE:CVS) declined about 15% from the prior year, while Elevance Health (NYSE:ELV) and Centene (NYSE:CNC) also posted declines.

Humana’s stronger ratings improve its potential access to Medicare Advantage bonus payments and enrollment opportunities.

Humana shares were up about 51% year to date through the previous close, while UnitedHealth, CVS and Elevance had gained between 10% and 14.4%.

Centene shares had risen about 57% year to date through the previous close, despite weaker average Medicare Advantage star ratings cited by Oppenheimer.