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Humana previews higher Medicare Advantage star ratings

03. lokakuuta 2025
Raportoinut AI

Health insurer Humana has provided an early look at its Medicare Advantage plan ratings, projecting an average of 4.38 stars for 2025. The company anticipates improved reimbursements as a result. Shares in Humana rose nearly 9% following the announcement.

Humana Inc., the largest provider of Medicare Advantage plans in the U.S., released preliminary star ratings for its plans on Wednesday, offering a glimpse into performance metrics that influence federal reimbursements.

The Centers for Medicare & Medicaid Services (CMS) assigns star ratings on a scale of 1 to 5 to Medicare Advantage plans based on quality and performance measures. Higher ratings lead to bonus payments from the government, which can total billions of dollars across the industry. Humana expects its overall average star rating to reach 4.38 for the 2025 plan year, an increase from 4.25 in 2024. This projection covers more than 5 million members enrolled in Humana's Medicare Advantage plans.

"We are pleased with the continued progress in our overall star ratings performance," said Humana CEO Bruce Broussard in a statement. The company highlighted improvements in areas such as member experience and clinical outcomes, though specific breakdowns were not detailed in the preliminary release.

The official star ratings will be published by CMS on October 1, 2024, as part of its annual update. This timing is critical for insurers, as it affects enrollment periods starting in the fall and reimbursement rates for the following year. Industry observers note that star ratings have become increasingly important amid regulatory scrutiny and rising healthcare costs.

Following the news, Humana's stock price surged approximately 9% in trading on Wednesday, reflecting investor optimism about the potential for higher revenue. The update comes at a time when Medicare Advantage enrollment continues to grow, now covering about half of all Medicare beneficiaries.

While Humana's preview is positive, the final CMS ratings could still vary based on additional data reviews. The broader Medicare star ratings announcement is expected to impact other major players like UnitedHealth Group and CVS Health, potentially influencing the entire sector's financial outlook.

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