Humana Cuts 2026 Profit Outlook After Medicare Star Ratings Decline

Health insurer Humana has revised its 2026 profit forecast downward due to lower star ratings for its Medicare plans, which the company said will lead to reduced federal payments. Humana's Medicare Advantage plans saw a decline in star scores under the government's quality assessment. These scores directly affect premium payments and bonuses to insurers. The lower ratings will negatively impact the company's revenue in 2026. In its updated financial outlook, Humana lowered its earnings per share expectations for 2026 below previous estimates. Management attributed the decline largely to the change in Medicare ratings and said it would seek to partially offset the impact through operational improvements. Analysts noted that the pressure on Humana's profit margins reflects broader regulatory changes affecting Medicare Advantage plans across the industry. The company announced it will focus on cost control and improving member health outcomes in the coming period. This is not investment advice.