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Humana Stock Jumps 12% as Medicare Star Ratings Improve

Humana (press release)2 min read6 sources

Why is Humana stock up today?

Humana (HUM) stock jumped 12% to about $433 on Friday after new Medicare star ratings showed 95% of its members in four-star plans, up from 20%, and Baird upgraded it.

Key numbers

Members in 4-star+ plans (2027)95%vs 20% in 2026
Humana share price$432.66+11.76% on the day
Baird price target$596from $390
Members in 4.5-star plans42%6 contracts rated 4.5 stars
J.P. Morgan expected 4-star+ share60%-70%actual 95%
Possible 2028 bonus payments (Evercore)$4.8Bper Reuters

What happened

Humana (HUM) stock jumped 12% to about $433 on Friday after new Medicare star ratings showed 95% of its members in four-star plans, up from 20%, and Baird upgraded it. Star ratings are government quality scores, from one to five, for private Medicare plans, and higher scores bring bonus payments. Humana's largest plan moved back up to four stars from 3.5. Baird raised its target for the stock (price target) to $596 from $390. Gains reached about 15% earlier in the day, so reported moves vary.

Why it matters

Humana matters to seniors and investors because higher star ratings bring bigger government bonus payments to the insurer. Evercore, a research firm, estimated those bonuses could reach $4.8 billion in 2028 (per). J.P. Morgan had expected only 60% to 70% of members in top-rated plans, so the result beat forecasts. Rivals UnitedHealth and CVS are expected to have fewer members in top-rated plans.

Who this affects

Marketmixed
Medium impact
Health insurer stocks split: Humana gains, CVS slips.
Companybullish
High impact
Humana regains bonus-payment eligibility; shareholders gain.
Competitorsbearish
Medium impact
UnitedHealth and CVS expected to lose top-rated members.
Industrymixed
Medium impact
About 71% of Medicare Advantage members sit in four-star plans.

Humana vs UnitedHealth, CVS Health

HumanaHUM+11.8%95%20%
UnitedHealthUNH+1.0%~67%81%
CVS HealthCVS-2.0%~70%84%

As of 2026-10-09

How we got here

  1. CMS publishes 2027 Medicare Advantage star ratings in the evening; Humana's main plan returns to four stars.

  2. Humana shares rise about 14% in premarket trading on the improved ratings.

  3. Baird upgrades Humana to Outperform and lifts its price target to $596.

What to watch

  • Humana's next earnings report and 2027 outlook; Baird sees 2028 adjusted EPS near $35.69.Q4 2026
  • Whether 2028 bonus payments approach Evercore's $4.8 billion estimate, reported by Reuters.2028

Educational content only. Not investment advice.

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