Quality ratings hit to key Medicare plan shakes Humana stock

Humana shares fell early Wednesday after the health insurer said a decline in its Medicare Advantage quality rating would hurt future bonus payments the company receives.

The number of customers currently enrolled in plans rated four stars or higher for 2025 is down 94% from this year, the insurer said. The rating on a large national insurance plan with 45% of Humana enrollees fell by one point to 3.5 points, Humana said.

Medicare Advantage plans are privately run versions of the federal government’s Medicare program mostly for people age 65 or older. The annual enrollment window for 2025 coverage begins October 15. Shoppers will have until December 7 to settle coverage for next year.

Humana Inc. said: In a regulatory filing it is talking with federal officials about the reduction. The company said it is also focusing on improving its performance to regain the star rating.

Humana, one of the largest providers of Medicare Advantage coverage, said the ratings decline would not impact its results or outlook for this year and next. The company said it will explore all options to mitigate the revenue it expects to receive in 2026 from lower bonus payments due to the classification change.

Shares of the Louisville, Kentucky-based company lost nearly $60 in value before markets opened on Wednesday. The price fell 21% to $219.88.

Shares are already down about 39% so far this year.

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