Humana Reports 20% of Members in 2026 Medicare Advantage Plans with Four-Plus Stars

What's Happening?

Humana has announced that approximately 20% of its members are enrolled in Medicare Advantage (MA) plans that are projected to receive at least four stars in the 2026 ratings. This information was disclosed in a filing with the Securities and Exchange Commission, following an inadvertent early release of data on the CMS Plan Finder. The preliminary data indicates that 1.2 million Humana members are in plans with at least four stars, with 14% in plans rated at 4.5 stars. The average star rating for Humana's plans is 3.61. Despite these figures, Humana expressed dissatisfaction with the 2026 results, attributing the performance to limited time for significant changes after a downturn in 2025. The company is focusing on diversifying its MA contracts to improve future ratings and expects these efforts to positively impact 2026 and beyond.

Why It's Important?

The star ratings for Medicare Advantage plans are crucial as they influence consumer choice and can impact the financial performance of insurers like Humana. Higher star ratings often lead to increased enrollment and higher reimbursements from the Centers for Medicare & Medicaid Services. Humana's focus on diversifying its contracts and improving plan design is a strategic move to enhance its competitive position in the Medicare Advantage market. The company's ability to improve its star ratings could lead to membership growth and financial stability, which is significant for stakeholders, including investors and policyholders. The outcome of these efforts will be closely watched by industry analysts and competitors.

What's Next?

Humana plans to continue its efforts to diversify its Medicare Advantage contracts and improve plan design, aiming for better performance in the 2027 star ratings. The company expects these initiatives to result in a return to membership growth in 2026. Stakeholders will be monitoring the impact of these strategies on Humana's market position and financial performance. The release of the full star ratings data by the Centers for Medicare & Medicaid Services will provide further insights into the competitive landscape of Medicare Advantage plans.