Stern hour at Humana: Quality ratings pressure stock price

The recently released final quality ratings of the U.S. Medicare program have made an impact on the stock market: Humana's shares are weaker in pre-market trading. The reason for the price decline is confirmed cuts to the so-called "Star Ratings" for the company's Medicare Advantage plans, which had already been anticipated. The rating losses affect one of Humana's largest contracts in the Medicare Advantage sector, potentially jeopardizing the possibility of bonus payments from the U.S. health program for seniors and people with disabilities in 2026. Such changes in bonuses are not only significant for Humana but could also impact other publicly traded health insurers. Among the affected companies are prominent names such as CVS Health, Centene, Cigna, Elevance Health, Molina Healthcare, and UnitedHealth. During early trading on Friday morning, Humana's share price fell by $9.04 or nearly 4% to $242.40.