Humana clears top-quartile Star Ratings goal for 2027
The insurer says part of the gain is one-time and will fund buybacks and investment rather than lift 2028 guidance
Published
Chart: HUM, one-minute prices, three sessions
Humana said final 2027 Medicare Advantage Star Ratings data from the Centers for Medicare and Medicaid Services show it has exceeded its goal of top-quartile results. The company defines that as Stars revenue per member per month at least 10% above the median of its peer group, which includes Centene, CVS, Elevance, HCSC and United.
Humana said it expects some of the outperformance to be one-time in nature for 2028. It plans to direct the related benefit toward one-time investments and shareholder returns rather than fold it into run-rate guidance. The company said more detail will come before or at its fourth-quarter 2027 earnings call.
Humana separately affirmed its 2026 guidance of at least $9.00 in adjusted earnings per share, consistent with the outlook it issued on July 29, 2026 and reaffirmed in a September 1, 2026 filing.
Star Ratings have been the swing factor in how much Medicare Advantage revenue insurers can book per member, and Humana's clearance of the top-quartile threshold against its five named peers removes a source of uncertainty that has weighed on the stock since ratings volatility hit the sector in prior cycles. By labeling part of the 2028 gain as one-time and setting it aside for buybacks and investment, management is signaling it does not want to set an expectation it cannot repeat. The reaffirmed $9.00 floor for 2026 gives investors a second point of stability alongside the Stars result, which matters given that regulatory rate uncertainty from CMS has also pressured other healthcare names, including Labcorp.