Humana’s Medicare Advantage star ratings are expected to slip slightly in 2026, with 20% of members in plans rated 4 stars or above. Despite improvements in highly rated plans, the insurer’s average star rating remains stable at 3.61, leading to a 3% stock increase.

The CMS accidentally released star ratings data for MA plans, prompting Humana to disclose its own results. While the average star rating remained stable, the percentage of members in plans rated 4 stars or higher dropped from 25% to 14%, with only 94% reaching that threshold in 2024.

Humana faces revenue losses due to star ratings drop from 2024 to 2025, expecting further decline in 2026. The insurer aims to return to top quartile results for 2027 and has taken legal action and made operational improvements to boost ratings.

Humana’s strategy of contract diversification and cutting commissions to brokers aims to increase members in highly rated plans. The insurer expects a higher percentage of 4-star plans in 2027 and prioritizes profit over growth in MA after shrinking margins and increased expenses.

UnitedHealthcare also disclosed early star ratings data, with roughly 78% of MA enrollees in 4+ star plans. Insurers are trimming service areas for 2026, but Humana’s stable benefits worry investors about potential high-cost new members. The Louisville-based payer expects to double pre-tax margin in MA plans next year.

Read more at Yahoo Finance: Humana’s Medicare Advantage star ratings slip for 2026