Humana shares jump 15% as Medicare Advantage star ratings surge
Humana's stock climbed about 15% after its Medicare Advantage plans saw a notable rise in four-star and higher ratings.
Analysts at J.P. Morgan had projected that 60% to 70% of Humana's Medicare Advantage members would be enrolled in four-star-or-above plans. The company's recent rating improvement exceeded those expectations, lifting its share price by roughly 15%. By contrast, J.P. Morgan forecasts declines for UnitedHealth and CVS Health in the share of high-rated plans. The U.S. Department of Health and Human Services projects that about 71% of Medicare Advantage prescription drug plan enrollees will be covered by four-star-or-higher contracts by 2027.
Why it matters
Higher Medicare star ratings can boost insurer market value and affect competition in the Medicare Advantage sector.
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