Humana shares surge amid improved 2027 Medicare star ratings

Humana shares rose 15% in premarket trading following the release of 2027 Medicare star ratings. The insurer reported that 95% of its Medicare Advantage members will be enrolled in plans rated four stars or higher in 2027, a significant increase from 20% in 2026. Analysts at J.P. Morgan noted that this performance outshines competitors, estimating that UnitedHealth’s share of high-rated plans will fall to approximately 67% and CVS Health’s to roughly 70%.

In response to the shifting regulatory landscape, consultancy Perficient has launched an AI suite designed to help Medicare Advantage plans manage and improve their CMS star ratings. These ratings are critical as they determine access to billions of dollars in federal bonus payments. The tools utilize predictive analytics and simulation modeling to assist plans in meeting the increasingly stringent criteria set by the government.