Humana Inc: 2027 Medicare Advantage star ratings exceed top quartile

What happened

• Humana Inc reported on Oct 9, 2026 in a Form 8-K that supplementary audio commentary from its president and chief executive officer, Jim Rechtin, is available on Humana’s Investor Relations page (https://humana.gcs-web.com/).
• Based on final 2027 Medicare Advantage star ratings data (Bonus Year 2028) provided by the Centers for Medicare and Medicaid Services on Oct 8, 2026, Humana announced it has exceeded its goal of Top Quartile results, defined as stars revenue per member per month 10% above the peer group median.
• The company affirmed guidance of at least $9.00 in adjusted earnings per common share for the year ending Dec 31, 2026, and said it is currently unable to reconcile that guidance to GAAP diluted EPS without unreasonable effort while completing the financial close for the periods ended Sep 30, 2026.

Key details

• Peer group used for the Top Quartile comparison: Centene, CVS, Elevance, HCSC, and United.
• Stars revenue per member per month (PMPM) is defined in the filing as the incremental revenue associated with obtaining a 3.5, 4, or 4.5 star rating, inclusive of incremental rebate retained and the quality bonus payment for a 4 star rating; a 50% rebate retention is assumed as baseline and not included as stars revenue.
• The calculation used a consistent 3.0 benchmark of $1,370, a consistent risk score of 1.15, and consistent benefits equating to a rebate of $222 for all payers, and current membership and contract distribution per the CMS membership files dated Sep 2026.
• The company said some of the outperformance for bonus year 2028 will be one time in nature and expects the benefit to be used for one-time investments and returns to shareholders; more detail will be provided prior to or when giving detailed 2028 financial guidance on the fourth quarter 2027 earnings call. Humana also noted a virtual investor update scheduled for Dec 10, 2026.

Why it may matter

• Item reported: Item 7.01, Regulation FD disclosure. The filing covers Reg FD materials (including CEO audio commentary) and the company’s disclosure that final CMS 2027 Medicare Advantage star ratings show Humana exceeded its Top Quartile goal, and it affirms its FY 2026 adjusted EPS guidance.
• The filing states the star ratings result and related stars revenue PMPM calculation, the company’s intended use of a one-time benefit for 2028, and timing for additional disclosure tied to detailed 2028 guidance.

This filing does not show why the insider traded or why the company acted.