Humana (HUM): Largest Medicare Advantage contract wins back 4 stars
Humana's largest Medicare Advantage contract rose back above the 4-star bonus cutoff in CMS's 2027 ratings. TD Cowen estimates $3bn+ of extra 2028 revenue, and shares jumped double digits after hours. Rivals like Alignment fell hard.
Why it matters Star Ratings set Medicare Advantage bonus payments two years out, so the 2027 ratings reshape 2028 revenue for insurers. Humana gains, while peers such as Alignment Healthcare lose ground. Humana itself expects part of the outperformance to be one-time, and a bonus is not the same as lasting profit growth.
What we verified Humana's 8-K dated 9 October 2026 says it exceeded its Star Ratings goal and affirmed 2026 adjusted EPS guidance of at least $9.00. Healthcare Dive reports its largest contract is back above 4 stars, TD Cowen's $3bn+ 2028 revenue estimate, and shares up almost 13% after hours (other outlets report 12.6% to 16%).
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