Humana Says 95% of Its Medicare Advantage Members Will Be in 4-Star or Higher Plans in 2027, Up From 20%

Humana said on Friday that 95% of its Medicare Advantage members will be in plans rated four stars or higher for 2027 by the Centers for Medicare and Medicaid Services, a sharp rebound from 20% in 2026. The Louisville-based insurer also said 42% of its members will be in 4.5-star plans.

The company’s shares rose 15% on Friday, according to Reuters, after analysts described Humana as the biggest winner in the new ratings. CMS scores Medicare Advantage and drug plans from one to five stars each year using measures tied to care quality, member experience and customer service, and plans at four stars or above qualify for bonus payments that affect what insurers are paid in a later year.

What changed in the ratings

Humana said it improved across the measure categories it reported. Compared with the year before, it said 663,000 more care opportunities were completed and 534,000 more members had an annual preventive visit. For 2027, the company listed six Medicare Advantage contracts at 4.5 stars and 12 at 4.0 stars, plus a prescription drug plan contract at 4.5 stars.

The result put Humana ahead of larger rivals on this measure in analyst estimates cited by Reuters. J.P. Morgan expected the share of members in four-star-or-higher plans to fall for UnitedHealth and for CVS Health, while the government said about 71% of people in Medicare Advantage prescription drug plans overall will be in contracts rated four stars or higher in 2027.

Readers weighing their options can compare Medicare Advantage vs. Original Medicare before the annual election period, which Humana noted runs from Oct. 15 through Dec. 7, with coverage choices taking effect Jan. 1, 2027.

Why the stars matter beyond the stock

Analysts cited by Reuters said the higher ratings could be worth billions in bonus payments in 2028, though the eventual profit effect will depend on how much the company puts back into member benefits and provider arrangements. Humana’s senior medical officer tied the star measures to preventive care, pointing to overdue screening examples the company reported, including mammograms, colorectal screening and diabetes eye exams that it said identified previously undetected conditions.

The turnaround follows two difficult years. Reuters noted that a steep drop in Humana’s 2025 ratings put bonus payments at risk, the company lost a legal challenge over how those ratings were calculated, and it gave a weaker 2026 profit outlook in February.

Reporting based on coverage by Reuters and Business Wire.