Humana Inc. provides medical and specialty insurance products in the United States. It operates in two segments: Insurance and CenterWell. The Insurance segment offers Medicare Advantage products, stand-alone prescription drug plans, Medicare supplements, specialty and ancillary insurance, and administrative services for military personnel and pharmacy benefit managers. CenterWell operates senior-focused primary care centers, home health services, and pharmacy and hospice solutions. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. It was founded in 1961 and is headquartered in Louisville, Kentucky.
Humana's Star Ratings Rebound Restores Bonus Payments, Lifting Stock
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Star Ratings Recovery Restores Bonus Payments CMS upgraded Humana's largest Medicare Advantage contract to 4 stars for 2027, and 95% of members will be in 4-star-plus plans, up from 20%. This restores federal quality bonus payments, boosting future earnings and lifting the stock 15%.
This is the main new event that directly answers why HUM is moving, with a clear positive impact.
Analyst Upgrade on Improved Earnings Outlook Baird upgraded Humana to Outperform with a $596 price target, up from $390, citing confidence in $35-plus of 2028 adjusted EPS. This analyst endorsement reinforces the positive sentiment from the Star Ratings news.
It shows a direct analyst reaction to the improved fundamentals, supporting the stock's move.
Expanded Coverage for Incontinence Device Humana will cover BlueWind Medical's Revi System for urgency urinary incontinence, expanding treatment access for its 11 million Medicare Advantage enrollees. This is a minor positive but shows Humana's role in adopting new technologies.
It is a new coverage decision that could marginally improve Humana's reputation and member satisfaction.
Medicare Advantage Industry Retrenchment Centene is exiting 344 counties and three states for 2027, and Humana plans to exit 57 counties and Minnesota, as premiums are expected to decline 16.5%. This industry-wide pullback reflects ongoing pressure on Medicare Advantage profitability.
It provides context on the challenging Medicare Advantage environment, a counterweight to the positive Star Ratings news.
Delta Cuts Full-Year Outlook on Fuel Costs; Humana Jumps on Medicare Ratings
Delta Air Lines reduced its full-year earnings outlook, sending its shares down 2.6% in premarket trading, after persistently high jet fuel prices tied to the war in the Middle East pushed fuel costs $500 million higher in its most recent quarter. The carrier said strong travel demand was not enough to offset the higher fuel expense, and unlike European airlines, U.S. carriers do not hedge jet fuel, leaving them more exposed to spot prices. Humana surged after 18 of its Medicare Advantage contracts received ratings of at least four stars, up from seven a year earlier, a jump that can translate into bonuses worth billions of dollars and boost future revenue. CVS shares fell as ratings for some of its largest plans deteriorated, while UnitedHealth shares were little changed in premarket trading. Apple shares slipped after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand.
Humana Jumps 13% on Medicare Star Upgrade; Delta Falls on Q3 Miss
Humana shares surged 13% after the Centers for Medicare & Medicaid Services upgraded its primary Medicare Advantage contract, designated H5216, to four stars for 2027, restoring eligibility for quality bonus payments across roughly 2.4 million members. Kopin rose 4% on an $18.6 million sole-source U.S. Army contract for MicroLED microdisplay work, bringing total program funding to $34 million. SpaceX gained 2% after an $8 billion cash deal with Grain Management for up to 14 MHz of nationwide 800 MHz low-band spectrum, a move that sent T-Mobile US, Verizon Communications and AT&T each down more than 6%. On the losing side, Alignment Healthcare tumbled 18% after its primary California contract fell to 3.5 stars, while Delta Air Lines fell 2% on September-quarter adjusted EPS of $1.72 versus the $1.82 consensus and a lowered full-year outlook, with adjusted fuel expense up 62% to $4.14 billion. Apple slipped 2% after Nikkei Asia reported it cut October component orders for the iPhone 18 Pro and iPhone 18 Pro Max by 15% to 20%.
AAPL · Demand · Negative Apple cut October component orders for iPhone 18 Pro/Pro Max by 15-20%, signaling weaker product demand.
ALHC · Regulation · Negative Its primary California Medicare contract fell to 3.5 stars, losing quality bonus eligibility.
DAL · Capital · Negative Delta missed Q3 EPS consensus ($1.72 vs $1.82) and lowered its full-year outlook.
HUM · Regulation · Positive CMS upgraded Humana's primary Medicare Advantage contract H5216 to four stars for 2027, restoring bonus payments.
KOPN · Demand · Positive Kopin won an $18.6M sole-source U.S. Army contract for MicroLED microdisplay work.
SPCX · Capital · Positive SpaceX gained 2% after an $8 billion cash deal with Grain Management for up to 14 MHz of nationwide 800 MHz low-band spectrum.
Barclays Initiates SpaceX at Overweight With $254 Price Target
Barclays initiated coverage of SpaceX with an Overweight rating and a $254 price target, part of a broad rollout of coverage across the aerospace and defense group in which the firm said the U.S. is in the "early innings of a modern day industrial revolution." In the same sweep, Barclays started RTX, Palantir, Kratos Defense, Karman, DPC Holdings, CAE, Beta Technologies and Rocket Lab at Overweight, Planet Labs, FireFly Aerospace, AeroVironment, York Space Systems and Lockheed Martin at Equal Weight, and Northrop Grumman at Underweight. Among other calls, Baird upgraded Humana to Outperform from Neutral with a price target of $596, up from $390, citing greater confidence in the company's $35-plus of 2028 adjusted earnings per share power, while Morgan Stanley double upgraded Cboe Global Markets to Overweight from Underweight with a price target of $358, up from $258. On the downgrade side, JPMorgan cut DuPont to Neutral from Overweight with a price target of $145, down from $172, and removed the stock from its Analyst Focus List, and also downgraded Illinois Tool Works to Neutral from Overweight with a price target of $270, down from $350, both on concerns around decelerating short cycle industrial demand into 2027. Citi downgraded Pershing Square Inc. to Sell from Neutral with an unchanged price target of $45 on valuation, and RBC Capital downgraded Knife River to Sector Perform from Outperform with a price target of $58, down from $103. Other initiations included Truist starting IBM at Hold with a $240 price target, Citi starting Fortune Brands at Buy with a $48 price target, Freedom Broker starting Ultra Clean at Buy with a $127 price target, and JPMorgan resuming Trane at Overweight with a $550 price target.
Delta Cuts Full-Year Outlook as SpaceX Spectrum Deal Rattles Telecoms
Delta Air Lines reported weaker-than-expected third-quarter results and cut its full-year earnings outlook, sending its shares down 4% premarket. The airline earned an adjusted $1.72 per share on revenue of $17.59 billion, below the $1.75 per share and $17.67 billion analysts polled by LSEG had expected, with the company citing higher fuel costs. SpaceX shares rose 4% after Grain Management announced an agreement to sell its nationwide 800 megahertz spectrum portfolio to SpaceX, a move expected to bolster Starlink Mobile's capabilities. The spectrum announcement sent telecom providers lower, with T-Mobile down 7%, AT&T nearly 6% lower and Verizon off more than 5%, while tower stocks American Tower and Crown Castle gained 6% and almost 8% respectively. Humana surged 14% after its largest Medicare Advantage contract saw its rating improve under the Centers for Medicare & Medicaid Services' 2027 Star Ratings, while Alignment Healthcare cratered 23%. Apple fell more than 2% after Nikkei Asia reported the company was cutting component orders for its iPhone 18 Pro, with October production orders for that device and the iPhone 18 Pro Max cut by 15% from original plans.
DAL · Capital · Negative Delta reported weaker-than-expected Q3 results and cut its full-year earnings outlook, citing higher fuel costs.
HUM · Regulation · Positive Humana surged 14% after its largest Medicare Advantage contract's rating improved under CMS' 2027 Star Ratings.
AAPL · Demand · Negative Nikkei Asia reports Apple cut iPhone 18 Pro component orders, with October production orders down 15% from original plans.
ALHC · Regulation · Negative Alignment Healthcare cratered 23% after its largest Medicare Advantage contract's Star Rating was not improved under CMS' 2027 ratings.
SPCX · Capital · Positive SpaceX shares rose 4% after Grain Management agreed to sell its nationwide 800 MHz spectrum portfolio to SpaceX, bolstering Starlink Mobile.
T · Competition · Negative AT&T fell nearly 6% as SpaceX's spectrum deal is expected to strengthen Starlink Mobile's competitive position.
Humana Says 95 Percent of Medicare Advantage Members in 4-Star or Above Plans for 2027
Humana announced improved CMS Star Ratings for 2027, with 95 percent of its Medicare Advantage members enrolled in plans rated 4.0 stars or above and 42 percent in 4.5-star plans. For 2027, Humana has six Medicare Advantage contracts rated 4.5 stars and 12 rated 4.0 stars, an increase of 11 contracts rated 4.0 stars or above compared with the prior year, while its stand-alone prescription drug plan contract earned a 4.5-star rating. The company said performance improved across all measure categories, with 663,000 more care opportunities met and 534,000 additional members completing an annual preventive visit versus the prior year. Those engagement efforts produced 28,000 overdue mammograms that identified 600 previously undetected breast cancers, 93,000 overdue colorectal cancer screenings that identified 100 previously undetected precancers and cancers, and 73,000 overdue eye exams for members with diabetes that identified 17,000 previously undetected diagnoses of diabetes-related eye disease. CEO Jim Rechtin said the ratings reflect the work of thousands of Humana employees, and Chief Medical Officer Shantanu Nundy said earlier detection gives members more treatment options and better outcomes.
HUM · Regulation · Positive Humana's CMS Star Ratings improved for 2027, with 95% of Medicare Advantage members in 4-star or above plans, boosting quality bonus eligibility.
Humana Jumps 16.5%, Alignment Healthcare Falls Over 20% on Medicare Star Rating Reversals
Humana's largest Medicare Advantage contract recovered to 4 stars from 3.5 stars in the 2027 ratings published by the Centers for Medicare & Medicaid Services on October 8, sending its shares up 16.5% on Thursday while rival Alignment Healthcare tumbled more than 20% after its largest California contract was downgraded to 3.5 stars from 4. The improvement restores Humana's eligibility for federal quality bonus payments, potentially providing a significant boost to the insurer's earnings in 2028. Alignment's downgraded contract accounted for approximately 81% of the company's membership as of September 2025. The developments mark a reversal of fortunes for the two insurers: Humana suffered a major ratings collapse in 2024, when the proportion of members enrolled in plans rated at least 4 stars plunged from 94% to 25% for the following year, while Alignment had emerged as an industry outperformer with 100% of its membership in plans rated at least 4 stars for 2026. CMS assigns Medicare Advantage plans ratings ranging from 1 to 5 stars based on measures including clinical outcomes, customer experience and plan performance, and contracts achieving at least 4 stars qualify for quality bonus payments that increase federal funding available to insurers; the newly published ratings will primarily affect payments and company revenues in 2028.
ALHC · Regulation · Negative CMS downgraded Alignment's largest California contract to 3.5 stars from 4, covering ~81% of membership, cutting quality bonus payments.
HUM · Regulation · Positive CMS restored Humana's largest Medicare Advantage contract to 4 stars, regaining eligibility for federal quality bonus payments.
UnitedHealth Q3 Preview: Can the Medical Cost Rebound Hold?
UnitedHealth Group heads into third-quarter earnings on Oct. 13 with investors focused on whether the second-quarter rebound in medical costs can hold. UnitedHealthcare's medical care ratio improved to 86.7% in the second quarter from 89.4% a year earlier, operating earnings rose to $3.9 billion from $2.1 billion, and operating margin climbed to 4.6% from 2.4%, though the quarter included $860 million of favorable medical reserve development. Management's 88.1% full-year MCR outlook will be closely watched, along with underlying medical costs, Medicare inpatient and outpatient utilization, commercial cost trends, specialty-drug inflation and provider coding intensity. On Medicare Advantage, membership stood at 7.565 million at June 30, down 785,000 from a year earlier, and management expects the full-year MA decline to reach roughly 1.1 million members, while still expecting Medicare margins to finish 2026 above 3%. Peers Humana and Elevance Health also face rising medical cost trends, with Humana's insurance benefit ratio up 130 basis points to 91.2% and Elevance's benefit expense ratio up 80 basis points to 89.7%. The Zacks Consensus Estimate for UnitedHealth's 2026 earnings is $19.85 per share, implying a 21.4% improvement from the year-ago period.
UNH · Capital · Neutral Q3 preview centers on whether UnitedHealth's Q2 medical cost rebound (MCR 86.7%, operating earnings $3.9B) can hold, with the 88.1% full-year MCR outlook and 2026 EPS estimate of $19.85 in focus.
ELV · Supply · Negative Elevance's benefit expense ratio rose 80 basis points to 89.7% amid rising medical cost trends, pressuring margins.
HUM · Supply · Negative Humana's insurance benefit ratio climbed 130 basis points to 91.2% as medical cost trends rise.
Centene to Exit 344 Counties and Three States in 2027 Medicare Advantage Pullback
Centene Corporation is pulling its standard Medicare Advantage plans from 344 counties for 2027 and exiting Hawaii, Oklahoma and Tennessee, as its Wellcare unit narrows its plan lineup and reduces its presence in several counties. Wellcare will retain a stronger presence in Special Needs Plans, with D-SNP products representing nearly half of its 2027 Medicare Advantage offerings, while dual-eligible members account for roughly 40% of its Medicare Advantage membership. The retrenchment comes as the Centers for Medicare & Medicaid Services expects weighted average monthly Medicare Advantage premiums to decline 16.5% in 2027, with projected enrollment of 34 million. Competitors are making similar moves: UnitedHealth Group is pulling standard plans from 140 counties while adding more Special Needs Plans, and Humana plans to exit 57 counties and Minnesota for 2027 while reducing certain PPO offerings. Centene shares have surged 56.3% year to date, and the Zacks Consensus Estimate for its 2026 earnings stands at $4.89 per share, implying 135.1% growth from the year-ago period.
CNC · Regulation · Negative Centene is pulling standard Medicare Advantage plans from 344 counties and exiting Hawaii, Oklahoma and Tennessee for 2027 amid CMS premium pressure.
HUM · Regulation · Negative Humana plans to exit 57 counties and Minnesota for 2027 while reducing certain PPO offerings, mirroring the Medicare Advantage retrenchment.
UNH · Regulation · Negative UnitedHealth is pulling standard Medicare Advantage plans from 140 counties while adding more Special Needs Plans for 2027.
BlueWind Medical Wins Humana Coverage for Revi Incontinence Device
BlueWind Medical announced that Humana will provide coverage for implantable tibial neuromodulation therapy for the treatment of urgency urinary incontinence, including the company's Revi System, effective October 1, 2026. Humana is the second-largest Medicare Advantage organization in the U.S., with approximately 11 million enrollees in 2026. The Revi System is an FDA-approved tibial neuromodulation treatment whose miniature implant is placed near the ankle in an outpatient procedure under local anesthesia and is designed for a 15-year implant life, with patients receiving personalized therapy at home via a lightweight external wearable transmitter. BlueWind CEO Kerry Nelson called Humana's decision an important milestone for patients and cited the company's pivotal OASIS study, which provides three-year data showing 79% of participants achieved at least 50% improvement and 63% achieved at least 75% improvement, with 95% patient satisfaction. Humana cites the OASIS study among the evidence supporting its coverage determination for implanted posterior tibial nerve stimulation, and last week BlueWind also announced that the American Medical Association CPT Editorial Panel approved a new Category I CPT code for subfascial implantation of a tibial neuromodulation device.
HUM · Regulation · Positive Humana's coverage determination for implantable tibial neuromodulation therapy expands reimbursement access for the Revi System among its ~11 million Medicare Advantage enrollees.
Humana Shrinks Medicare Advantage Footprint for 2027
Humana will offer Medicare Advantage plans in nearly 2,600 counties across 45 states and Washington, D.C. for the 2027 plan year, a sharp reduction from the 46 states and Washington, D.C. it covered for 2026, when its plans reached 85% of U.S. counties. The Louisville, Kentucky-based insurer, the second-largest MA player behind UnitedHealth, said the new footprint represents more than 80% of U.S. counties, and it has announced plans to discontinue offerings affecting 600,000 enrollees. UnitedHealth said its UnitedHealthcare MA plans will remain accessible to 94% of Medicare-eligible individuals next year, unchanged from 2026, though Bloomberg reported that roughly 390,000 people will be part of plans being shut down. CVS Health's Aetna unit and Centene are also pulling back their MA offerings, according to CMS data reviewed by Wall Street analysts, while Alignment Healthcare is expanding to 55 counties and Clover Health said its plans will reach 5.2M Medicare-eligible individuals across 203 counties in five states. The moves come as the MA market contends with rising medical costs and intense government scrutiny, and after CMS said 2027 MA enrollment is expected to reach 34M, a 6% decline, despite a more than 16% drop in MA premiums versus 2026 on a weighted average basis.
HUM · Regulation · Negative Humana is sharply shrinking its 2027 Medicare Advantage footprint and discontinuing plans affecting 600,000 enrollees amid rising costs and government scrutiny.
ALHC · Demand · Positive Alignment Healthcare is expanding its Medicare Advantage footprint to 55 counties, a growth move against peers' pullbacks.
CLOV · Demand · Positive Clover Health said its plans will reach 5.2M Medicare-eligible individuals across 203 counties in five states, an expansion.
CNC · Regulation · Negative Centene is pulling back its Medicare Advantage offerings amid rising medical costs and intense government scrutiny.
CVS · Regulation · Negative CVS Health's Aetna unit is pulling back its Medicare Advantage offerings amid rising medical costs and government scrutiny.
UNH · Regulation · Neutral UnitedHealth's MA plans stay at 94% coverage unchanged, but ~390,000 enrollees are in plans being shut down amid MA market scrutiny and rising costs.
BrightSpring Health Services' Specialty and Infusion business grew revenue 30% year over year in the second quarter, with scripts up 31%, driven by branded limited distribution drug growth, new launches, fee-for-service programs, generics and acute-infusion expansion. The company added two ultra-narrow-network LDDs in the quarter, bringing its total portfolio to 155 programs, and launched 12 LDDs in the first half of 2026, four as exclusive partners and eight as ultra-narrow-network programs. Pharmacy Solutions' adjusted EBITDA rose 44% to $180 million, and management expects continued quarter-over-quarter growth through the remainder of 2026. BrightSpring said it has several hundred clinical liaisons across thousands of prescriber offices and 15 years of LDD experience, infrastructure it can leverage for rare and orphan therapies. Separately, Cigna's Specialty & Care pretax adjusted earnings rose 22% year over year to $1.1 billion, while Humana's second-quarter growth was driven primarily by Medicare Advantage membership and CenterWell expansion.
Brent tops $100, Treasury yields climb as U.S. equities slip
U.S. equities pushed lower on Wednesday as oil kept climbing, with Brent crude breaking above $100 a barrel while U.S.–Iran tensions in the Middle East continued to weigh on sentiment. Treasury yields advanced after the Treasury Department said it will repurchase up to $6 billion of longer-dated notes in Thursday's operation, tripling the size of its last long-end buyback; the 2-year yield rose 2 basis points to 4.42%, the 10-year added 5 basis points to 4.84%, and the 30-year gained about 4 basis points near 5.29%. Brent crude futures surged above $100 per barrel for the first time since July 24, with front-month Brent for November delivery climbing 3.3% to $101.13/bbl and Nymex crude jumping 3.2% to $96.02/bbl, as traffic through the Strait of Hormuz dropped from roughly 8 million barrels per day in late August to only 1 million barrels per day this week, according to Rystad Energy. Separately, Anthropic's Alignment Science Lead Evan Hubinger said he "earnestly" believes AI could kill all humans, putting his personal estimate of the probability at more than 10% within the next decade, and the company's latest risk report upgraded the risk from misalignment in high-stakes settings to "low" from "very low." Managed care stocks declined after CVS Health said at the Wells Fargo Healthcare Conference that it continues to face elevated medical costs, with notable decliners including UnitedHealth, Humana, Clover Health, Alignment Healthcare, Centene, Oscar Health, Elevance Health, and Molina Healthcare.
Medicare Advantage Nonrenewal Notices Due October 2
Insurers have already told Wall Street which Medicare Advantage plans will end on December 31, 2026, but members will only learn by mail, with nonrenewal notices due by October 2. Humana confirmed that its 2027 plan exits will affect approximately 600,000 members, while UnitedHealth Group expects Medicare Advantage enrollment to decline by about 1.1 million. These terminations open a rare guaranteed-issue Medigap window, but only for members returning to Original Medicare, not for those switching to another Advantage plan. With Medicare Open Enrollment closing December 7, members should save the notice and price both coverage paths immediately, as Medigap premiums can range from $150 to $250 monthly, while a $0-premium Advantage plan may have an out-of-pocket maximum up to $9,250 in 2026.
The Villages Health Settles Medicare Fraud for $541.5 Million
The Justice Department announced a $541.5 million settlement with The Villages Health over alleged Medicare Advantage upcoding, resolving claims that from 2020 to 2024 the primary care provider submitted false diagnosis codes to increase reimbursements. By 2024, about half of the company's patient diagnosis codes were unsupported, according to an outside consultant's review cited by Healthcare Dive. The settlement targets the bankrupt pre-sale entity, The Villages Health System LLC, with the government holding a nondischargeable claim in the Chapter 11 process, while Humana's CenterWell division, which acquired the operating business for $68 million in late 2025, is shielded from direct payment. The insurers that received inflated payments, including Humana, UnitedHealthcare, and Blue Cross Blue Shield of Florida, are returning overpayments credited against the total. The same month, the Justice Department resolved two other Medicare Advantage upcoding cases, signaling a national enforcement priority on risk-adjustment fraud.
The Villages Health · Regulation · Negative The Villages Health System LLC settled DOJ Medicare Advantage upcoding claims for $541.5 million, with a nondischargeable claim in its Chapter 11 case.
HUM · Regulation · Neutral Humana's CenterWell unit acquired the operating business and is shielded from direct payment, but Humana received inflated payments and is returning overpayments credited against the settlement.
UNH · Regulation · Negative UnitedHealthcare received inflated Medicare Advantage payments and is returning overpayments credited against the $541.5M settlement.
Blue Cross Blue Shield of Florida · Regulation · Negative Blue Cross Blue Shield of Florida received inflated payments and is returning overpayments credited against the settlement.
Thyme Care Raises $125M Series E, Forms Thyme Companies
Thyme Care, a Nashville-based oncology company, announced a Series E financing round of over $125 million, led by Morgan Health with participation from Humana, CVS Health Ventures, and other investors, at a valuation exceeding $2 billion. The company also established Thyme Companies, a new parent entity aimed at building a portfolio of oncology-focused businesses to address challenges such as biosimilar adoption and clinical trial enrollment. Thyme Care, which serves over 10.5 million people across all 50 states and manages more than $7 billion in oncology spend, reports validated cost reductions of 5 to 10 percent and is profitable with positive free cash flow. Co-founder Robin Shah will become executive chairman of Thyme Companies, while Brad Diephuis remains CEO of Thyme Care, with Bobby Green as president and chief medical officer. The first new business under Thyme Companies is expected to launch later this year.
Thyme Care · Capital · Positive Thyme Care raised over $125M in Series E funding at a valuation exceeding $2 billion, led by Morgan Health with CVS Health Ventures and Humana participating.
Thyme Companies · Capital · Positive Thyme Companies was newly established as the parent entity of Thyme Care, formed alongside the $125M Series E raise.
HUM · Capital · Positive Humana participated in Thyme Care's $125M Series E financing round, a direct investment in the oncology company.
UnitedHealth Prioritizes Medicare Advantage Profitability Over Membership Growth
UnitedHealth Group is shifting its Medicare Advantage strategy to prioritize profitability over membership expansion, expecting 2026 enrollment to decline by approximately 1.1 million members due to targeted exits from unprofitable plans. Medicare margins are now expected to finish the year above 3%, reflecting tighter benefit design, pricing actions, and a more favorable membership mix, while the company expects Medicare medical cost trends to come below the initial estimate of near 10%. UnitedHealth's consolidated medical care ratio improved to 86.7% in the second quarter from 89.4% a year ago, and the company raised its 2026 adjusted EPS outlook to $19.50-$20. The Zacks Consensus Estimate for UnitedHealth's 2026 earnings is pegged at $19.69 per share, implying 20.4% growth from the year-ago period, and the stock currently carries a Zacks Rank #1 (Strong Buy).
UNH · Capital · Positive UnitedHealth raised its 2026 EPS outlook and reported improved margins, signaling strong financial performance.
ELV · Competition · Negative UnitedHealth's strategic shift to prioritize profitability may pressure competitors like Elevance to follow suit, potentially impacting their growth.
HUM · Competition · Negative Humana faces competitive pressure as UnitedHealth exits unprofitable plans, potentially reshaping the market and affecting Humana's positioning.
Humana Star Ratings Recovery Seen as Key Medicare Advantage Catalyst
Humana's Star Ratings recovery is emerging as a key catalyst for its Medicare Advantage turnaround, with the company targeting a return to top-quartile performance by bonus year 2028. The company defines top-quartile performance as Stars revenue per member per month 10% above the peer median, and a successful recovery could improve the economics of its MA plans and complement other margin initiatives. Early execution signals are encouraging, with the rate of improvement across 11 of 12 selected HEDIS and patient-safety measures outpacing historical trends. The October Centers for Medicare & Medicaid Services Stars release will be the key near-term test, and a meaningful rebound could strengthen the case that Humana is on a credible path toward its 2028 margin target of at least 3% pretax. Shares of Humana have gained 47.6% year to date, outperforming the broader industry's 20.2% growth, and the stock trades at a forward price-to-earnings ratio of 29.24X versus the industry average of 15.98X.
Health insurance providers reported strong second-quarter results, with the 12 tracked stocks beating revenue consensus estimates by 2.8% as a group. Humana posted revenues of $40.87 billion, up 26.2% year over year, exceeding expectations by 0.6%. CVS Health delivered the best quarter with revenues of $106.1 billion, up 7.3% and beating estimates by 6.7%, while Progyny was the weakest with revenues of $350.5 million, up 5.3% but missing next-quarter EBITDA guidance significantly. Oscar Health achieved the fastest revenue growth at 70.4% to $4.88 billion, and Centene topped estimates by 13.1% with revenues of $53.58 billion. Despite the beats, the group's stocks are down 5.8% on average since reporting.
Health insurers drop Medicare Advantage plans affecting nearly 3 million seniors
Nearly 3 million older Americans face forced disenrollment from their Medicare Advantage plans this year as major insurers exit markets to protect profits. An analysis by Johns Hopkins Bloomberg School of Public Health researchers found one in 10 Medicare Advantage policyholders are losing their plans, up from a 6.9% disenrollment rate in 2025 and an average of 1% between 2018 and 2024. Humana announced it will exit multiple markets in 2027 for the second consecutive year, impacting 600,000 members, while Clear Spring Health shut down its Medicare Advantage operations effective June 1 and Presbyterian Health Plan will exit most markets in 2027 affecting about 30,000 policyholders. Insurers cite lower federal reimbursement rates and rising medical costs, with UnitedHealth and Humana together accounting for nearly half of all Medicare Advantage enrollment nationwide.
Humana Partners With HealthStream to Boost Indiana Home-Care Workforce
Humana's Medicaid managed care plan, Humana Healthy Horizons, is teaming up with HealthStream in Indiana to strengthen the state's home-care workforce. Under the initiative, Humana is sponsoring 1,000 Home Health Aide scholarships to help remove financial barriers for people entering the caregiving field. The program uses HealthStream's Career Network to reach rural and underserved communities, and Humana is also deploying HealthStream's CoachUp Care platform, predictive analytics and training tools to help providers recruit and retain caregivers. The collaboration targets high caregiver turnover, as home-care providers have an average annual turnover rate of 77%, while Humana says trained home-care aides are more than twice as likely to remain employed after three months and 64% more likely to stay after six months than workers without comparable training. Early results show 81% of participating providers achieving above-average caregiver retention, with providers that improved retention reporting an average 43% increase.
Aging Population › Home Healthcare & Hospice ▲Supply
HUM · Demand · Positive Humana sponsors 1,000 scholarships and deploys training tools to improve caregiver retention, directly benefiting its Medicaid plan.
HSTM · Demand · Positive HealthStream's Career Network and CoachUp Care platform are used in Humana's initiative, expanding its services and market reach.
James P. Holland to Join Humana as Medicaid President
Humana announced that James "J.P." Holland will join the company as senior vice president and President of Medicaid, effective August 17. Holland will lead Humana's Medicaid business, which currently serves more than 1.6 million members in 11 states, and will report to Aaron Martin, President of Insurance. He most recently served as President and CEO of Johns Hopkins Health Plans, and previously held leadership roles at Elevance Health, Amerigroup, and WellCare Health Plans.
Humana cuts 2026 EPS guidance to at least $6.52 despite strong Q2
Humana lowered its full-year 2026 GAAP EPS guidance to at least $6.52 from at least $8.36, even as it reported second-quarter revenue of $40,867 million and net income of $694 million. The company also confirmed completion of a $276.13 million share repurchase program and announced two new board appointments, Paul Smith and Frederick Crawford. The guidance cut signals a more cautious profitability outlook amid medical cost and Stars-related headwinds, while the quarterly beat and stable revenue trends indicate the core Medicare Advantage and CenterWell franchise remains intact.
CVRx cuts full-year revenue outlook as sales force productivity lags
CVRx reported second-quarter 2026 revenue of $15.7 million, a 16% increase from the prior year, but lowered its full-year revenue guidance to between $58.0 million and $60.0 million. U.S. revenue rose 21% to $14.8 million, driven by growth in heart failure implants and expansion to 258 active implanting centers, while European revenue fell 31% to $0.9 million. The company cited fewer sales territories than anticipated, lower sales force productivity, and a prolonged challenge with one of its largest payers as reasons for the reduced outlook. Gross margin improved to 87%, and net loss narrowed to $14.0 million, or $0.53 per share. Humana issued a Medicare Advantage coverage policy for Barostim therapy effective May 1, 2026, marking the first coverage policy of its kind for the device.
Humana Subsidiary iCare Selected for Family Care and Family Care Partnership Contracts Across Southeast Wisconsin
Independent Care Health Plan, a Humana subsidiary, has been selected by the Wisconsin Department of Health Services to serve both the Family Care and Family Care Partnership programs in the greater southeast region. The award expands iCare's footprint to all seven counties in the service area and marks its third consecutive Wisconsin geographic win, with the organization earning the highest overall evaluation score among awardees for both programs. With this pending contract, iCare will now offer Family Care, branded Inclusa, in all 72 counties, while expanding access to Family Care Partnership in Kenosha, Ozaukee, Racine, Sheboygan, Walworth, Washington, and Waukesha. CEO Kiva Gittings Graves said the selection represents continuity for existing members and new access to high-quality long-term care services for more Wisconsinites.
HUM · Demand · Positive iCare, a Humana subsidiary, won contracts to serve Family Care and Family Care Partnership programs, expanding its footprint and membership.
AdaptHealth Cuts Full-Year EBITDA Guidance by $55 Million on Contract and Pricing Headwinds
AdaptHealth Corp lowered its full-year adjusted EBITDA guidance by $55 million, citing a $40 million second-half impact from a missed West Coast capitated contract and a $30 million hit from a major manufacturer's contract termination and immediate price increase. The company also announced a definitive agreement to sell its diabetes business for $235 million, recorded a $144.2 million non-cash goodwill impairment related to that divestiture, and expanded its capitated relationship with Humana to 33 states plus D.C. and South Florida, transitioning 478,000 new members. Organic growth reached 16% with record volume gains, and a new AI-powered mask fitting tool achieved a 92% conversion rate in its first two weeks, driving a 56% increase in MyApp adoption. A workforce restructuring is expected to deliver $19 million in annualized savings, while free cash flow was negative $20.9 million in the second quarter due to $166.2 million in capital expenditures.
AHCO · Capital · Negative Cut full-year EBITDA guidance by $55 million due to contract and pricing headwinds, and recorded a $144.2 million goodwill impairment.
AHCO · Demand · Positive Expanded Humana capitated relationship to 33 states plus D.C. and South Florida, transitioning 478,000 new members, and organic growth reached 16% with record volume gains.
HUM · Demand · Positive Expanded capitated relationship with AdaptHealth to 33 states plus D.C. and South Florida, transitioning 478,000 new members.
Regeneron and DexCom lead healthcare sector in July as Moderna and managed-care stocks retreat
The healthcare sector gained about 2.45% in July, outperforming the broader S&P 500 which slipped around 0.12%. Regeneron Pharmaceuticals was the biggest winner, climbing 22.08%, followed by DexCom which gained 21.19% after its Q2 earnings beat and raised full-year guidance, and Baxter International which advanced 20.61%. Moderna was the biggest detractor, dropping 24.39%, while Intuitive Surgical fell 12.19% and managed-care insurers Humana, Elevance Health, and Centene also finished among the weakest performers. Earnings-driven gains in pharmaceuticals and medtech contrasted with weakness in managed-care insurers and vaccine makers.
Medicare Advantage Insurers Lock In 2027 Benefit Cuts and Market Exits
UnitedHealth and Humana have already locked in their 2027 Medicare Advantage strategies, with UnitedHealth trimming enrollment by 1.1 million members and Humana targeting 25% growth. Members whose plan is discontinued will have a 63-day guaranteed-issue window for Medigap Plans A, B, C, D, F, and G, though Plans C and F are unavailable to people newly eligible for Medicare on or after January 1, 2020. Missing that window allows insurers to medically underwrite, charge more, or deny coverage based on health. The Annual Notice of Change must arrive by September 30, and the Annual Enrollment Period runs from October 15 through December 7. CMS also grants a Special Enrollment Period from December 8 through the end of February for those whose plan does not renew.
South Korea Caps Single-Stock Leveraged ETFs to Calm Market Volatility
South Korea's finance minister has initiated caps on single-stock leveraged ETFs, a first-of-its-kind move to quiet market volatility related to memory chip giant SK Hynix. The KOSPI index fell another 6% overnight, bringing its weekly decline to 15%, while SK Hynix shares dropped 1% after missing top and bottom line estimates in its first publicly traded earnings report, despite triple-digit increases in operating profits and sales. The broader market showed pre-market futures flat to down ahead of the Federal Reserve's interest rate decision, with the Dow off 340 points and the Nasdaq down 7. Saudi Arabia attacked Iran-backed forces in Iraq, widening the Middle East conflict and pushing spot oil prices back up, though they remain in the $80s per barrel. In earnings, Procter & Gamble beat fiscal Q4 earnings by 2 cents per share on revenues of $21.2 billion, Humana posted a 22.35% positive earnings surprise with $7.61 per share, and Biogen reported $3.60 per share, well above the $3.04 consensus.
Humana Q2 Earnings Beat Estimates on Medical Membership Growth
Humana reported second-quarter 2026 adjusted earnings of $7.61 per share, beating the Zacks Consensus Estimate by 22.4% and rising 21.4% year over year. Adjusted revenues improved 26.2% to $40.9 billion, surpassing the consensus mark by 0.6%, driven by premium gains and a strong performance from the CenterWell segment. Total medical membership reached 17.9 million as of June 30, 2026, up 20.7% year over year and exceeding estimates. The benefit ratio deteriorated 140 basis points to 91.1%, while the adjusted operating cost ratio improved 120 basis points to 9.7%. Humana reaffirmed its full-year 2026 revenue guidance of at least $160 billion and adjusted EPS of at least $9, though GAAP EPS guidance was lowered to at least $6.52 from the prior $8.36.
Humana cuts 2026 profit outlook on lower Medicare star ratings
Humana cut its full-year earnings outlook on Wednesday as lower Medicare Advantage Star Ratings reduced the quality bonuses it receives from the federal government. The health insurer revised its full-year GAAP earnings target to a minimum of $6.52 per share, down from its earlier projection of at least $8.36 per share, while leaving its adjusted forecast intact at a minimum of $9 per share. A significant decline in the number of Humana's plans rated four stars or higher has weighed on its 2026 bonus payments from the Centers for Medicare and Medicaid Services. Second-quarter profit rose to $694 million, or $5.73 per share, from $545 million, or $4.51 per share, a year earlier, with total revenue up 26% to $40.87 billion. On an adjusted basis, the company earned $7.61 per share, beating the Wall Street Journal analyst consensus of $7.26. Humana also reaffirmed its expectation that individual Medicare Advantage enrollment will expand by roughly 25% compared with 2025, and its stock fell about 9% in premarket trading.
Humana Elects Paul Smith and Frederick Crawford to Board of Directors
Humana has elected Paul Smith and Frederick Crawford to its Board of Directors, effective immediately. Smith is the Chief Commercial Officer at Anthropic PBC and brings over 30 years of experience leading global go-to-market organizations at major enterprise technology companies, including ServiceNow, Salesforce, and Microsoft. Crawford brings more than 30 years of insurance and banking experience, having served as President and Chief Operating Officer of Aflac until his retirement in 2024, and previously as CFO of CNO Financial Group and Lincoln Financial Group. The elections expand Humana's board to 13 directors.
Trump administration ends Medicare Part D subsidy, raising 2027 premiums for most enrollees
A Trump administration decision to end a Medicare Part D subsidy program means that three out of four enrollees will see higher plan premiums in 2027. About 45% of enrollees will see an $11 to $20 monthly increase, while another 30% will pay $10 or under more per month, according to a report in The Wall Street Journal. An administration official told the newspaper that the subsidy provided an incentive for health insurers to boost rates as the federal government would foot the additional amount. The subsidy provided approximately $3.6 billion in support in 2026, according to the Government Accountability Office. The top Medicare Part D insurers include Centene, Humana, and UnitedHealth Group.
Aging Population › Chronic-Disease Pharma Franchises ▼Regulation
CNC · Regulation · Negative End of Medicare Part D subsidy will reduce government payments to insurers, pressuring Centene's Part D margins and raising premiums for enrollees.
HUM · Regulation · Negative End of Medicare Part D subsidy will reduce government payments to insurers, pressuring Humana's Part D margins and raising premiums for enrollees.
UNH · Regulation · Negative End of Medicare Part D subsidy will reduce government payments to insurers, pressuring UnitedHealth's Part D margins and raising premiums for enrollees.
Zacks Research Flags Four Medical Stocks Poised for Q2 Earnings Beats
Zacks Investment Research has identified four medical-sector companies with the right setup to beat second-quarter earnings expectations. The picks are CVS Health, Cardinal Health, Humana, and ACADIA Pharmaceuticals, each combining a positive Earnings ESP with a Zacks Rank of 1 or 2. Humana carries a Zacks Rank of 1 and an Earnings ESP of plus 1.71 percent, with consensus revenue estimates of 40.65 billion dollars implying 25.5 percent growth. CVS Health holds a Zacks Rank of 2 and an Earnings ESP of plus 1.42 percent, with consensus revenue of 100.18 billion dollars. Cardinal Health also has a Zacks Rank of 2 and an Earnings ESP of plus 1.24 percent, with fiscal fourth-quarter revenue pegged at 65.61 billion dollars. ACADIA Pharmaceuticals rounds out the list with a Zacks Rank of 2 and an Earnings ESP of plus 25.00 percent, driven by expected growth from Daybue and Nuplazid.
UnitedHealth Raises 2026 EPS Outlook Above Estimates, Shares Jump 10.3%
UnitedHealth Group raised its full-year adjusted earnings outlook after second-quarter profit exceeded Wall Street expectations, sending shares up as much as 10.3% in their largest intraday gain since April. The company now expects adjusted earnings of $19.50 to $20 per share this year, up from a prior forecast of more than $18.25 and above analyst estimates. A closely watched measure of medical costs also performed better than projected, while quarterly profit topped the highest estimate in a Bloomberg survey. Chief Financial Officer Wayne DeVeydt said improving medical-cost trends in the first half gave the company greater confidence to raise its outlook, and the updated forecast could provide a starting point for increasing profits next year at the company's historical target rate of 13% to 16% average annual earnings-per-share growth. Shares of Humana and CVS Health also advanced following the report.
Health insurance stocks rise 37.4% on average after strong Q1 earnings
Health insurance provider stocks tracked by this publication posted a strong first quarter, with revenues beating analyst consensus estimates by 1.4% and next-quarter revenue guidance coming in line. As a group, share prices have risen 37.4% on average since the latest earnings results. Cencora reported revenues of $78.36 billion, up 3.8% year on year but falling short of expectations by 3.9%, leaving its stock flat. CVS Health delivered the biggest beat, with revenues of $100.4 billion up 6.2% year on year and exceeding estimates by 6.3%, driving a 29.2% stock gain. Molina Healthcare's revenues of $10.8 billion, down 3.1% year on year, met expectations but its full-year revenue guidance missed significantly, yet the stock surged 52.6%. Humana's revenues of $39.65 billion, up 23.5% year on year, met estimates and its full-year EPS guidance beat, propelling a 70.4% stock increase. Clover Health achieved the fastest revenue growth at 62% year on year to $749.2 million, beating estimates by 4.8%, and its stock jumped 65.9%.
Humana has set a goal of achieving a 3% Medicare Advantage margin by 2028, a key milestone for its long-term earnings recovery. The company continues to expect approximately 25% growth in individual Medicare Advantage membership in 2026, focusing on attracting higher-quality members through disciplined pricing, stronger product design, and better retention. Humana is also investing to rebuild its Medicare Star Ratings, which drive future reimbursement and profitability, and reaffirmed its 2026 adjusted EPS guidance of at least $9.00. Shares of Humana have gained 53.1% year to date, outperforming the broader industry's 28.5% growth, and the stock trades at a forward price-to-earnings ratio of 32.21, above the industry average of 18.48.
UnitedHealth Launches Lifestyle Spending Account Integrated with UHC Store
UnitedHealth Group has launched a Lifestyle Spending Account, an employer-sponsored, post-tax benefit integrated with its UHC Store platform, enabling eligible members to purchase approved health, wellness and lifestyle products without submitting reimbursement claims. The account covers categories such as fitness, nutrition, sleep, mindfulness, women's health and weight management, and is available to more than 15 million UnitedHealthcare commercial members with over 30 offerings from dozens of vendors. The initiative aims to simplify administration for employers and strengthen UnitedHealth's digital healthcare ecosystem, though it is unlikely to materially boost near-term earnings. Competitors Humana and Elevance Health are also expanding their employer-sponsored health benefits through virtual care, wellness programs and integrated care platforms.
Medicare Advantage insurers to receive over $13B in bonus payments in 2026
Health insurers led by UnitedHealth, Humana, and CVS Health are expected to receive at least $13.4 billion in federal bonus payments this year under the Medicare Advantage quality bonus program, according to a report by health research organization KFF. The program rewards plans rated four stars and above, with nearly 24 million enrollees, or about 68% of total Medicare Advantage members, in such plans this year, up from 55% in 2015 when bonus payments totaled only $3 billion. UnitedHealth, the largest Medicare Advantage insurer, is set to receive $3.9 billion, or 29% of total bonus spending, while Humana will receive $1.5 billion, or 11%, after its average star rating dropped sharply. CVS Health and Elevance Health are expected to receive $2 billion and $462 million, respectively, and Centene will be eligible for $21.5 million. KFF noted that eliminating the program could yield substantially higher savings than the Congressional Budget Office's 2018 estimate of $100 billion over 10 years, given the sharp increase in Medicare Advantage enrollment.
Aging Population › Retirement Income & Annuities ▲Regulation
UNH · Regulation · Positive UnitedHealth is set to receive $3.9 billion, the largest share (29%) of the $13.4 billion in bonus payments.
HUM · Regulation · Positive Humana will receive $1.5 billion in bonus payments despite a drop in star rating, representing 11% of total bonus spending.
CVS · Regulation · Positive CVS Health is expected to receive $2 billion in bonus payments from the Medicare Advantage quality bonus program.
ELV · Regulation · Positive Elevance Health is expected to receive $462 million in bonus payments from the Medicare Advantage quality bonus program.
CNC · Regulation · Positive Centene is eligible for $21.5 million in bonus payments from the Medicare Advantage quality bonus program.
Humana Foundation Announces Over $12 Million in New Grants for Emotional Health
The Humana Foundation has announced over $12.2 million in new grants to combat loneliness, depression, and social isolation among seniors and veterans nationwide. The funding supports 13 nonprofit organizations and five university research teams, with major investments including $3 million to Older Adults Technology Services from AARP, $1 million to Friendship Bench, and $890,000 to the National Recreation & Park Association. Regional grants target Texas, Florida, Kentucky, and multi-state interventions, while $1.75 million is allocated to research institutions exploring emotional health and nutrition through AI, culturally tailored interventions, and whole-person care. The foundation will announce a second slate of grants in Fall 2026.
Aging Population › Home Healthcare & Hospice ▲Demand
HUM · Capital · Positive The Humana Foundation's $12M+ grants for emotional health are a charitable activity, not a core business driver, but may enhance brand reputation.
CenterWell Drives Humana's Growth Beyond Insurance with 19.7% Revenue Jump
CenterWell is playing a growing role in Humana's strategy to evolve beyond its traditional health insurance business. In the first quarter of 2026, the segment generated $6.1 billion in revenues, up 19.7% year over year, reflecting growth across primary care, home health, and pharmacy services. Humana expects CenterWell's total revenues to generate at least $25 billion in 2026. The company is strengthening the platform through acquisitions such as MaxHealth, which added approximately 59,000 patients and 54 centers, and through a Cost Plus partnership to develop prescription drug solutions for employers. Humana is also improving operational efficiency by increasing automation and using AI-enabled analytics to identify care gaps and support proactive care management.
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