Quality ratings hit to key Medicare plan shakes Humana stock

Shares of Humana tumbled Wednesday after the health insurer said a Medicare Advantage quality rating drop will hurt future bonus payments the company receives.

The insurer said the share of its customers currently enrolled in plans rated four stars or higher for 2025 is down to 25% from 94% this year. Humana said the rating on a large, national insurance plan that contains 45% of Humana’s enrollment fell a point to 3.5 points.

That ratings drop could equate to a $1.9 billion revenue hit in 2026 before Humana does anything to offset the blow, Leerink Partners analyst Whit Mayo said in a research note.

Medicare Advantage plans are privately run versions of the federal government’s Medicare program mostly for people age 65 and older. An annual enrollment window for 2025 coverage starts Oct. 15. Shoppers will have until Dec. 7 to settle on coverage for next year.