Reuters US Business
(Reuters) -Humana said on Thursday it has about 20%, or 1.2 million, of its members currently enrolled in Medicare Advantage plans rated 4 stars and above for 2026, based on preliminary data.
Shares of the company rose 3.1% to $254.68 after the insurer also said that about 14% of its members were in 4.5-star plans in 2026, up from 3% in 2025, in a regulatory filing.
Humana said that the preliminary 2026 star ratings were in line with its assumptions.
Plans with higher star ratings mean bigger payments from the government to the insurer, and the bonus payments can be worth hundreds of millions or billions of dollars.
The preliminary star ratings data was inadvertently accessible on the Centers for Medicare and Medicaid Services' Plan Finder for a period of time on Wednesday, according to the filing.
CMS, a part of the U.S. Department of Health and Human Services, did not immediately respond to a Reuters request for comment on the timing of the release of ratings.
The agency issues star ratings, between one and five, for Medicare Advantage plans, with five indicating the highest performer. Medicare Advantage plans cover Americans aged 65 years or older.
Humana said it is not satisfied with its 2026 star ratings, but said it expects to return to "top quartile results for the 2027 star ratings".
The 2026 ratings would typically impact insurers' revenues in 2027.
Humana, CVS Health and UnitedHealth Group said on Wednesday they will pull back on Medicare Advantage offerings next year, as the industry braces for further decreases in government reimbursement.
Insurers this year have said that an unexpectedly high use of medical services in their Medicare businesses has led them to exit less-profitable markets.
Humana on Thursday reaffirmed its annual adjusted profit forecast of about $17 per share.
(Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli)
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