Humana Shares Surge Following Significant Medicare Advantage Star Ratings Improvement

03:51 PM EDT, 10/09/2026 (MT Newswires) -- US health insurance and managed care stocks were mostly advancing Friday, with Humana (HUM) surging following its industry-leading star ratings improvement in the 2027 Medicare Advantage plans. Humana Chief Executive Jim Rechtin said that 95% of the health insurer's Medicare Advantage, or MA, members are enrolled in plans with ratings of at least four stars by the Centers for Medicare and Medicaid Services for 2027. That's significantly higher from plans for the previous year, according to analysts at Oppenheimer and Truist Securities. "Our 2027 stars results...approach the highest star ratings Humana has ever achieved, with a member weighted star rating of 4.17," Rechtin said in prepared remarks posted on the company's website Friday. Humana logged "significant performance improvement" across all measure categories, the company said in a statement. CMS rates MA and Part D plans on a five-star scale annually based on measurements of quality of care, member experience and customer service. "Humana's recovery is impressive given the speed and magnitude of the turnaround," Oppenheimer said in a note to clients. "Overall, we estimate a $3.6 (billion) revenue impact in 2028 (versus) the estimated 2027 exposure." Humana shares were up 12% in late-afternoon trade, taking the stock's year-to-date gains to 70%. Clover Health Investments (CLOV) jumped 5.9%, while Elevance Health (ELV), Centene (CNC), UnitedHealth Group (UNH), and Molina Healthcare (MOH) were also higher. Alignment Healthcare (ALHC) slid 12%, while CVS Health (CVS) edged down 0.7%. Separately, Humana said Friday it continues to expect full-year adjusted earnings of at least $9 a share, according to a regulatory filing. Analysts in a FactSet poll are looking for $9.16. CVS' Aetna said that more than 69% of its MA members are in 2027 plans rated four stars or higher, while Alignment Healthcare said six of seven eligible MA contracts earned at least four stars. Clover said its Preferred Provider Organization MA plans received the five-star rating, while its Health Maintenance Organization MA plan got a rating of 4.5 stars for 2027. In a note to clients, Truist said it remains "broadly bullish" on the managed care sector, reiterating its buy ratings on the shares of Centene, CVS, Elevance and UnitedHealth, while keeping Humana and Molina at hold. Oppenheimer also expressed an optimistic view for the sector. "With an improved backdrop, we believe managed care companies remain in a good spot heading into (the third quarter) and year-end, and we would be buyers of the group," the brokerage said in a separate note to clients. Price: 435.47, Change: +48.35, Percent Change: +12.49