Quality ratings hit on key Medicare plan shake up Humana stock

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

The insurer said the number of customers currently on plans rated at least four stars for 2025 was down 94% from this year. Humana said its rating for its large, nationwide insurance plan, which covers 45% of Humana’s coverage, dropped a point to 3.5 points.

Medicare Advantage plans are a private version of the government’s Medicare program, intended primarily for people age 65 and older. The annual registration period for 2025 begins on October 15. Buyers will have until December 7 to settle their insurance for next year.

Humana Inc. said in its regulatory filing that it is talking to federal officials about the reductions. The company said it is also focusing on improving its performance to regain its star rating.

Humana, one of the largest providers of Medicare Advantage insurance, said the ratings decline would not affect its results or prospects for this year and next. The company said it will explore all options to mitigate the impact of expected 2026 revenues from a decline in bonus payments due to the rating change.

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

The company’s shares are already down about 39% this year.