# Humana Says 95% of Medicare Advantage Members in 4-Star Plans for 2027 **18 of Its Medicare Advantage Contracts Received Ratings of at Least Four Stars — And Wall Street Just Got a Masterclass in What a Turnaround Actually Looks Like** --- ## The Number That Stopped Everyone Cold Let me tell you about a woman named Margaret. She's 72 years old, lives in a small town outside of Louisville, Kentucky, and has been a Humana Medicare Advantage member for eleven years. She's had two knee replacements, manages her diabetes with a daily routine, and relies on her plan for everything from doctor visits to prescription drugs. Margaret doesn't follow earnings reports. She doesn't know what "star ratings" are. She just knows that every October, she gets a thick envelope in the mail with all the plan options for the coming year. And every year, she hands it to her daughter, who helps her figure out which plan is best. This year, her daughter told her something she didn't expect: "Mom, your plan just got a lot better." Margaret didn't understand what that meant. But the people on Wall Street did. And they responded by sending Humana's stock soaring nearly **15%**. --- ## What Humana Actually Announced On October 8, 2026, Humana released a simple but stunning press release. The headline said it all: **95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher for 2027** . A year ago, that number was just **20%** . The turnaround didn't happen by accident. Humana's leadership had promised investors that star ratings would be "meaningfully higher" for 2027. And they delivered . **The Contract Breakdown:** For 2027, Humana has: - **Six MA contracts rated 4.5 stars** - **Twelve MA contracts rated 4.0 stars** - **Eleven additional MA contracts rated 4.0 stars or above compared to the prior year** - **One Part D (prescription drug) contract rated 4.5 stars** The company's largest MA contract — covering about **2.4 million members** — moved up to four stars from 3.5 stars. That single upgrade makes the plan eligible for bonus payments that could be worth billions . About **3 million Humana members** are in contracts rated **4.5 stars** for 2027 — that's **42%** of the company's Medicare Advantage membership . --- ## Why Star Ratings Matter So Much If you're not in the Medicare world, star ratings might sound like a bureaucratic detail. They're not. They're the single most important financial metric for Medicare Advantage insurers. **What Star Ratings Are:** The Centers for Medicare & Medicaid Services (CMS) rates Medicare Advantage and Part D plans on a **1-to-5 star scale** every year. The ratings measure quality of care, member experience, and customer service . Plans need at least **4 stars** to qualify for **quality bonus payments** — extra money from the government that insurers can use to offer better benefits, reduce premiums, or improve their margins . **The Financial Impact:** According to TD Cowen analyst Ryan Langston, Humana's improved star ratings could net the company **$3 billion or more in extra revenue in 2028** — the year those bonus payments actually kick in . Oppenheimer analyst Michael Wiederhorn estimated the improvement could add **$3.6 billion** in revenue and provide "greater visibility into future earnings" . **The Competitive Angle:** Here's what makes Humana's performance even more impressive: it came while some of its larger competitors actually slipped. - **UnitedHealth's** share of members in 4+ star plans is expected to fall to about **67%** from 81% - **CVS Health (Aetna)** is projected to drop to roughly **70%** from 84% - **Elevance Health** fell to **47%** from 55% - **Centene** dropped to about **10%** from 20% The industry average for 2027 is about **71%** of enrollees in 4+ star plans . Humana went from well below the pack to well above it. --- ## Frequently Asked Questions **Q: What exactly did Humana announce?** A: Humana said **95% of its Medicare Advantage members** will be in plans rated **four stars or higher** for 2027, up from just **20% in 2026**. The company has **six MA contracts rated 4.5 stars** and **twelve rated 4.0 stars**, with **11 additional contracts** rated 4.0+ compared to last year . **Q: Why did Humana's stock surge?** A: Higher star ratings mean **higher government bonus payments**. TD Cowen estimates the improvement could bring Humana **$3 billion or more in extra revenue in 2028** . J.P. Morgan had expected Humana to hit only 60-70% of members in 4+ star plans, so the 95% figure blew past expectations . **Q: What are Medicare Advantage star ratings?** A: CMS rates Medicare Advantage and Part D plans on a **1-to-5 star scale** each year based on quality of care, member experience, and customer service. Plans need at least **4 stars** to qualify for **quality bonus payments** — extra government funding that can be used to improve benefits or boost margins . **Q: How did Humana improve its ratings so dramatically?** A: The company focused on **member engagement** and **preventive care**. Compared to the prior year, Humana met **663,000 more care opportunities** and had **534,000 additional members** complete annual preventive visits. The results included detecting **600 previously undetected breast cancers**, **100 colorectal precancers and cancers**, and **17,000 diabetes-related eye disease diagnoses** . **Q: How does Humana compare to competitors?** A: Humana's 95% is significantly higher than the industry average of about **71%**. UnitedHealth is expected at **67%**, CVS Health at **70%**, Elevance at **47%**, and Centene at about **10%** . **Q: When do the bonus payments kick in?** A: The 2027 star ratings determine bonus payments for **2028**. So the financial benefit won't show up immediately. Humana's 2027 results will still reflect the weaker prior ratings . **Q: What is Humana's financial outlook?** A: Humana reaffirmed its **2026 adjusted EPS guidance of at least $9.00** . The company has stated a goal of reaching an **individual Medicare Advantage pretax margin of at least 3% in 2028** — the same year the improved ratings affect bonus payments . **Q: What did analysts say?** A: J.P. Morgan's Lisa Gill called it a **"clear win for a company that has been working toward this outcome for several years"** . Evercore ISI's Elizabeth Anderson credited gains in **drug plan quality, health plan quality, and readmissions** . Baird upgraded the stock to **Buy** . --- ## Conclusion: A Turnaround That Actually Worked Here's what I keep coming back to when I think about Margaret, the Humana member in Kentucky. She doesn't care about star ratings. She doesn't know what a "quality bonus payment" is. She just wants her plan to work when she needs it — to cover her doctors, her prescriptions, her knee replacements. What Humana announced this week is that, for 95% of its members, the plan is going to be **better**. Better benefits. Better service. Better care. That's what the star ratings measure. And that's why the stock soared. The road here wasn't easy. Two years ago, Humana's star ratings collapsed. The percentage of members in 4+ star plans fell from **94% in 2024 to just 20% in 2026** . The company was hemorrhaging credibility with investors and members alike. But management made a promise: ratings would be "meaningfully higher" for 2027. And they delivered — not just meeting expectations, but blowing past them. J.P. Morgan expected 60-70%. Humana delivered 95%. That's not a minor beat. That's a statement. For Margaret, it means her plan is likely to be more stable, with better benefits and more resources. For Humana's investors, it means billions in future revenue and a path back to profitability. And for the Medicare Advantage industry, it's a reminder that star ratings aren't just a scorecard — they're the difference between thriving and surviving. --- ## Disclaimer **This article is for informational and educational purposes only. It does not constitute investment, financial, or healthcare advice. The author has no position in Humana (HUM) or any related securities. Information presented here is based on publicly available sources and reported figures as of the publication date. Star ratings are subject to annual revision, and bonus payments depend on future performance and regulatory conditions. Individual plan benefits vary by contract and location. Readers should consult official CMS resources and qualified professionals for information

 

Humana Says 95% of Medicare Advantage Members in 4-Star Plans for 2027

**18 of Its Medicare Advantage Contracts Received Ratings of at Least Four Stars — And Wall Street Just Got a Masterclass in What a Turnaround Actually Looks Like**

---

## The Number That Stopped Everyone Cold

Let me tell you about a woman named Margaret. She's 72 years old, lives in a small town outside of Louisville, Kentucky, and has been a Humana Medicare Advantage member for eleven years. She's had two knee replacements, manages her diabetes with a daily routine, and relies on her plan for everything from doctor visits to prescription drugs.

Margaret doesn't follow earnings reports. She doesn't know what "star ratings" are. She just knows that every October, she gets a thick envelope in the mail with all the plan options for the coming year. And every year, she hands it to her daughter, who helps her figure out which plan is best.

This year, her daughter told her something she didn't expect: "Mom, your plan just got a lot better."

Margaret didn't understand what that meant. But the people on Wall Street did. And they responded by sending Humana's stock soaring nearly **15%**.

---

## What Humana Actually Announced

On October 8, 2026, Humana released a simple but stunning press release. The headline said it all: **95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher for 2027** .

A year ago, that number was just **20%** .

The turnaround didn't happen by accident. Humana's leadership had promised investors that star ratings would be "meaningfully higher" for 2027. And they delivered .

**The Contract Breakdown:**

For 2027, Humana has:

- **Six MA contracts rated 4.5 stars**

- **Twelve MA contracts rated 4.0 stars**

- **Eleven additional MA contracts rated 4.0 stars or above compared to the prior year**

- **One Part D (prescription drug) contract rated 4.5 stars** 

The company's largest MA contract — covering about **2.4 million members** — moved up to four stars from 3.5 stars. That single upgrade makes the plan eligible for bonus payments that could be worth billions .

About **3 million Humana members** are in contracts rated **4.5 stars** for 2027 — that's **42%** of the company's Medicare Advantage membership .

---

## Why Star Ratings Matter So Much

If you're not in the Medicare world, star ratings might sound like a bureaucratic detail. They're not. They're the single most important financial metric for Medicare Advantage insurers.

**What Star Ratings Are:**

The Centers for Medicare & Medicaid Services (CMS) rates Medicare Advantage and Part D plans on a **1-to-5 star scale** every year. The ratings measure quality of care, member experience, and customer service .

Plans need at least **4 stars** to qualify for **quality bonus payments** — extra money from the government that insurers can use to offer better benefits, reduce premiums, or improve their margins .

**The Financial Impact:**

According to TD Cowen analyst Ryan Langston, Humana's improved star ratings could net the company **$3 billion or more in extra revenue in 2028** — the year those bonus payments actually kick in .

Oppenheimer analyst Michael Wiederhorn estimated the improvement could add **$3.6 billion** in revenue and provide "greater visibility into future earnings" .

**The Competitive Angle:**

Here's what makes Humana's performance even more impressive: it came while some of its larger competitors actually slipped.

- **UnitedHealth's** share of members in 4+ star plans is expected to fall to about **67%** from 81% 

- **CVS Health (Aetna)** is projected to drop to roughly **70%** from 84% 

- **Elevance Health** fell to **47%** from 55%

- **Centene** dropped to about **10%** from 20% 

The industry average for 2027 is about **71%** of enrollees in 4+ star plans . Humana went from well below the pack to well above it.

---

## Frequently Asked Questions

**Q: What exactly did Humana announce?**

A: Humana said **95% of its Medicare Advantage members** will be in plans rated **four stars or higher** for 2027, up from just **20% in 2026**. The company has **six MA contracts rated 4.5 stars** and **twelve rated 4.0 stars**, with **11 additional contracts** rated 4.0+ compared to last year .

**Q: Why did Humana's stock surge?**

A: Higher star ratings mean **higher government bonus payments**. TD Cowen estimates the improvement could bring Humana **$3 billion or more in extra revenue in 2028** . J.P. Morgan had expected Humana to hit only 60-70% of members in 4+ star plans, so the 95% figure blew past expectations .

**Q: What are Medicare Advantage star ratings?**

A: CMS rates Medicare Advantage and Part D plans on a **1-to-5 star scale** each year based on quality of care, member experience, and customer service. Plans need at least **4 stars** to qualify for **quality bonus payments** — extra government funding that can be used to improve benefits or boost margins .

**Q: How did Humana improve its ratings so dramatically?**

A: The company focused on **member engagement** and **preventive care**. Compared to the prior year, Humana met **663,000 more care opportunities** and had **534,000 additional members** complete annual preventive visits. The results included detecting **600 previously undetected breast cancers**, **100 colorectal precancers and cancers**, and **17,000 diabetes-related eye disease diagnoses** .

**Q: How does Humana compare to competitors?**

A: Humana's 95% is significantly higher than the industry average of about **71%**. UnitedHealth is expected at **67%**, CVS Health at **70%**, Elevance at **47%**, and Centene at about **10%** .

**Q: When do the bonus payments kick in?**

A: The 2027 star ratings determine bonus payments for **2028**. So the financial benefit won't show up immediately. Humana's 2027 results will still reflect the weaker prior ratings .

**Q: What is Humana's financial outlook?**

A: Humana reaffirmed its **2026 adjusted EPS guidance of at least $9.00** . The company has stated a goal of reaching an **individual Medicare Advantage pretax margin of at least 3% in 2028** — the same year the improved ratings affect bonus payments .

**Q: What did analysts say?**

A: J.P. Morgan's Lisa Gill called it a **"clear win for a company that has been working toward this outcome for several years"** . Evercore ISI's Elizabeth Anderson credited gains in **drug plan quality, health plan quality, and readmissions** . Baird upgraded the stock to **Buy** .

---

## Conclusion: A Turnaround That Actually Worked

Here's what I keep coming back to when I think about Margaret, the Humana member in Kentucky.

She doesn't care about star ratings. She doesn't know what a "quality bonus payment" is. She just wants her plan to work when she needs it — to cover her doctors, her prescriptions, her knee replacements.

What Humana announced this week is that, for 95% of its members, the plan is going to be **better**. Better benefits. Better service. Better care.

That's what the star ratings measure. And that's why the stock soared.

The road here wasn't easy. Two years ago, Humana's star ratings collapsed. The percentage of members in 4+ star plans fell from **94% in 2024 to just 20% in 2026** . The company was hemorrhaging credibility with investors and members alike.

But management made a promise: ratings would be "meaningfully higher" for 2027. And they delivered — not just meeting expectations, but blowing past them.

J.P. Morgan expected 60-70%. Humana delivered 95%.

That's not a minor beat. That's a statement.

For Margaret, it means her plan is likely to be more stable, with better benefits and more resources. For Humana's investors, it means billions in future revenue and a path back to profitability. And for the Medicare Advantage industry, it's a reminder that star ratings aren't just a scorecard — they're the difference between thriving and surviving.

---

## Disclaimer

**This article is for informational and educational purposes only. It does not constitute investment, financial, or healthcare advice. The author has no position in Humana (HUM) or any related securities. Information presented here is based on publicly available sources and reported figures as of the publication date. Star ratings are subject to annual revision, and bonus payments depend on future performance and regulatory conditions. Individual plan benefits vary by contract and location. Readers should consult official CMS resources and qualified professionals for information specific to their situation.**