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Humana's shares jumped 15% after the insurer emerged as the biggest winner of the 2027 Medicare Advantage star ratings. A whopping 95% of its members will be in plans rated four stars or higher — up from just 20% in 2026 — far outpacing rivals like UnitedHealth and CVS. Higher ratings translate directly into billions in government bonus payments.
Humana just had a very good Thursday night. The Centers for Medicare & Medicaid Services (CMS) released its 2027 Medicare Advantage star ratings, and Humana came out on top — sending its stock surging 15% on Friday. A remarkable 95% of its members will be enrolled in plans rated four stars or higher, a dramatic leap from just 20% in 2026 and well above analyst expectations of 60–70%.
The turnaround is significant. Humana had been struggling since a steep drop in its 2025 ratings threatened its bonus payments, and it even lost a lawsuit challenging how those ratings were calculated. Now, analysts say improvements in drug-plan quality, health-plan quality, and hospital readmission rates drove the rebound. Meanwhile, larger rivals took a hit — UnitedHealth's share of high-rated enrollments is projected to fall from 81% to ~67%, and CVS from 84% to ~70%. CMS also flagged a low-performance warning for a CVS Aetna prescription drug plan in California.
Why it matters: Medicare star ratings aren't just a report card — they're a financial lifeline. Higher ratings unlock billions in government bonuses and drive enrollment, especially during open enrollment (Oct. 15–Dec. 7). Humana's dramatic ratings recovery could reshape its competitive standing in the Medicare Advantage market heading into 2028.
