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Humana will have 20% of its Medicare Advantage members in plans rated 4 stars or above in 2026, down slightly from 2025 but in line with internal expectations, the insurer disclosed Thursday.
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Humana — the second largest MA carrier in the country — did see an improvement in members in plans rated 4.5 stars or above. Next year, 14% of Humana’s MA members will be in those highly rated plans, up from 3% in 2025.
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Humana’s average star rating of 3.61 is roughly stable year over year. The insurer, which has been working to improve its ratings, said it was unsatisfied with the results. Still, Humana’s stock rose about 3% in Thursday’s trade following its disclosure.
It’s busy season for insurance market watchers, with the CMS releasing more information on the Medicare Advantage landscape for the coming year — including by mistake.
On Wednesday, regulators published more detailed information on MA plan offerings for 2026 and inadvertantly released some star ratings data, leading Humana to file its own disclosure to investors, the insurer said.
Though Humana’s average star rating remained essentially unchanged, the results are overall likely disappointing for the insurer. That’s because the percentage of MA members in plans rated 4 stars or higher dropped from 25% this year.
To put that further into context, Humana had 94% of members in plans rated at least 4 stars in 2024.
Reaching that threshold is key for insurers in the privatized Medicare program. Plans that receive an overall rating of 4 or higher receive higher bonus payments. Higher scores also result in larger rebates if plans submit bids below the CMS’ benchmark for the coming year.
Humana expects to lose billions of dollars in revenue as a result of the star ratings drop from 2024 to 2025, so a further dip for 2026 won’t help.
“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, creating a solid foundation for the Company’s expected return to Top Quartile results for the 2027 Star Ratings,” Humana said in its securities filing
Along with suing the government in a bid to improve its scores, Humana has hustled to improve its ratings by closing gaps in care, increasing member outreach and investing in technology, according to executive comments.
