Humana lifted by stronger 2027 CMS star scores

Humana (HUM) announced a substantial improvement in its 2027 Medicare Advantage Star Ratings, stating that 95% of its Medicare Advantage membership will be enrolled in contracts rated 4.0 stars or higher. Within this base, 42% of members are expected to be in plans rated 4.5 stars. For 2027, the company reported six Medicare Advantage contracts at 4.5 stars and 12 contracts at 4.0 stars, and said it has 11 more Medicare Advantage contracts rated 4.0 stars or above than in the prior year.

Humana also reported that its stand-alone prescription drug plan earned a 4.5-star rating for 2027. The company framed these outcomes as an expansion of its portfolio of highly rated plans entering the upcoming enrollment period for that plan year.

One large Medicare Advantage contract was upgraded to a 4.0-star rating for 2027, a change that restores eligibility for federal quality bonus payments attached to higher-rated plans. Multiple reports identify this contract as H5216 and indicate that it covers roughly 2.4 million members, making it one of Humana’s largest Medicare Advantage offerings.

The restoration of bonus eligibility on this large contract, alongside the broader uplift in ratings across the portfolio, is expected to influence future Medicare Advantage funding flows tied to quality scores.

Analysts and brokers highlighted the financial impact of the improved Star Ratings. Oppenheimer estimated that the uplift could add about $3.6 billion in revenue potential for Humana. The improved ratings are also expected to increase Humana’s access to Medicare Advantage quality bonus payments in future payment years.

Following publication of the 2027 CMS ratings, Humana’s shares rose sharply in extended and premarket trading. Reported moves in the stock were in the roughly 13% to 16.5% range, reflecting investor response to the enhanced quality profile and associated revenue outlook.

Humana linked the ratings gains to expanded member outreach and clinical programs. The company said it met 663,000 additional care opportunities compared with the prior year and recorded 534,000 more members completing an annual preventive visit. These activities were presented as evidence of stronger preventive care and engagement with Medicare Advantage members.

The insurer cited specific screening outcomes, including 28,000 overdue mammograms that identified 600 previously undetected breast cancers and 93,000 overdue colorectal cancer screenings that uncovered 100 previously undetected precancers or cancers. Humana also reported that 73,000 diabetic members received overdue eye exams, leading to 17,000 diagnoses of diabetes-related eye disease. These results were tied to the company’s efforts to improve quality metrics that feed into Star Ratings.

The enhanced Star Ratings and restored bonus eligibility position Humana with a larger share of its Medicare Advantage members in higher-rated plans entering the 2027 plan year. Open enrollment for 2027 coverage is scheduled to run from Oct. 15 to Dec. 7, with coverage beginning Jan. 1, 2027. The upgraded ratings may play a role in how the company markets its Medicare Advantage and prescription drug offerings during that period.