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Humana Hits 95% Four-Star Coverage: What it Means for HUM

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Key Takeaways

  • Humana's 2027 ratings put 95% of Medicare Advantage members in four-star or better plans; 42% at 4.5 stars.
  • Humana addressed 663,000 more care opportunities, while 534,000 additional members had preventive visits.
  • The higher ratings could lift HUM's 2028 quality bonuses, helping fund plan benefits and support margins.

Humana Inc. (HUM - Free Report) recently said that its Medicare Advantage plans have made a sharp comeback in federal quality ratings for 2027. Under the Centers for Medicare and Medicaid Services (CMS) five-star system, 95% of its members are now enrolled in plans rated at least four stars, while 42% are in plans earning 4.5 stars.

The insurer secured six contracts with 4.5 stars and 12 with four stars, bringing its total of highly rated contracts to 18, up 11 from last year. Its standalone prescription drug plan also received 4.5 stars. Humana links this progress to better care coordination, stronger member engagement and wider access to preventive healthcare services across markets.

Medicare's star ratings assess how well insurers deliver care, serve members and support their health. They also shape consumers' choices during annual enrollment, giving Humana a stronger selling point against rivals. Beyond ratings, the results show tangible changes in care: 663,000 more care opportunities were addressed, and another 534,000 members completed annual preventive visits.

Outreach led to 28,000 overdue mammograms, uncovering 600 previously undetected breast cancers. Separately, 93,000 colorectal screenings identified 100 precancerous or cancer cases. These gains suggest Humana is reaching patients earlier, potentially avoiding more serious health problems later while keeping treatment options open.

The improved 2027 Star Ratings are expected to strengthen Humana's quality bonus payment prospects in 2028, potentially supporting revenues and profitability. With more members covered by four-star or better contracts, Humana stands to earn higher bonus payments and retain more funding for plan benefits. That could support pricing, customer retention and margins.

HUM also reaffirmed its 2026 adjusted earnings outlook of at least $9 per share and said some 2028 gains may fund one-time investments and shareholder returns.

HUM’s Price Performance

Humana’s shares have gained 51.1% year to date compared with the 15.3% rise of the industry it belongs to.

Zacks Investment Research Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Humana currently carries a Zacks Rank #3 (Hold).

Enhancing the array of healthcare options, some better promising stocks in the broader Medical sector include Brookdale Senior Living Inc. (BKD - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Aveanna Healthcare Holdings Inc. (AVAH - Free Report) . While Brookdale Senior Living currently sports a Zacks Rank #1 (Strong Buy), UnitedHealth and Aveanna Healthcare carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Brookdale Senior Living’s 2026 bottom line suggests 105.4% year-over-year improvement. BKD has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction.

The consensus estimate for UnitedHealth’s full-year 2026 earnings indicates a 21.4% year-over-year increase. UNH’s earnings beat estimates in each of the past four quarters, with an average surprise of 12.1%. The consensus mark for 2026 revenues is pegged at $446.78 billion.

The consensus mark for Aveanna Healthcare’s 2026 full-year earnings implies a 36.7% jump from the year-ago reported figure. AVAH’s earnings beat estimates in each of the past four quarters, with an average surprise of 49.3%. The consensus mark for its current-year revenues is pegged at $2.69 billion, which indicates a 10.6% year-over-year increase.

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