Humana Medicare Advantage star ratings not changed, says Oppenheimer

Oppenheimer says the Centers for Medicare and Medicaid Services released the Medicare Advantage star ratings affecting 2026 reimbursement, and there were no changes to Humana’s four key contracts that were below the key 4-star threshold. As a result, the company is likely to track in line with its announcement last week, which pointed toward 25% of members being in 4-star plans compared to 94% last year, the analyst tells investors in a research note. The firm believes Humana seems likely to continue its opposition, whether through appeal or a formal legal process. Even if this process fails, the company had noted that three of the four contracts were close to achieving the 4-star threshold, so a rebound in 2027 seems likely, adds Opco. It keeps an Outperform rating on Humana with a $280 price target The stock in premarket trading is down 4% to $242.00.