Humana Star Ratings Strengthen 2027 Position
Humana star ratings put most Medicare Advantage members in top-tier 2027 plans, a shift that could raise quality bonus payments and aid enrollment appeal.
KEY TAKEAWAYS
- Humana reported 95% of Medicare Advantage members in plans rated 4.0 stars or higher for 2027.
- 42% of Humana members were enrolled in 4.5-star plans for 2027 across six 4.5-star contracts.
- 2027 ratings affect quality bonus payments for the 2028 payment year.
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Humana Inc. (HUM) said in a press release on Oct. 9, 2026, that 95% of its Medicare Advantage members are enrolled in plans rated 4.0 stars or higher for 2027, a shift that could boost quality-related bonus payments and enhance its competitive position ahead of the open-enrollment season.
Star Ratings and Membership
Humana reported that 42% of its Medicare Advantage members are enrolled in plans rated 4.5 stars for 2027. The company has six Medicare Advantage contracts rated 4.5 stars and 12 rated 4.0 stars, an increase of 11 contracts rated 4.0 or higher compared with the prior year. Its prescription-drug-plan contract also earned a 4.5-star rating for 2027.
The Centers for Medicare & Medicaid Services (CMS) assigns star ratings on a one-to-five scale based on quality of care, member experience, and customer service. These ratings influence plan comparisons and enrollment decisions. Humana said the Annual Election Period for Medicare Advantage and Part D runs from Oct. 15 to Dec. 7, 2026, with coverage starting Jan. 1, 2027.
Competitive and Financial Implications
Humana’s announcement did not include updated earnings guidance, revenue projections, or estimates of the financial impact from the improved ratings. Analysts identified Humana as the largest beneficiary among major insurers from the 2027 ratings, noting the company’s share of members in 4-star-or-higher plans exceeded some expectations.
Estimates suggest a significant redistribution of quality-related economics among peers. UnitedHealth Group’s share of members in top-rated plans could decline to about 67% from 81%, while CVS Health’s share might fall to roughly 70% from 84%. CMS data indicate about 71% of Medicare Advantage prescription-drug-plan enrollees are in contracts rated 4 stars or higher for 2027. These ratings will affect quality bonus payments for the 2028 payment year.
Humana’s improved star ratings position it to compete more effectively for beneficiaries who consider these ratings when selecting plans. The scale of this shift will be a key factor in analysts’ forecasts of next year’s quality-related revenue.
“95% of its Medicare Advantage members were enrolled in plans rated ‘4.0 stars or above’ for 2027,” Humana said in its Oct. 9 release.
