Humana Medicare Advantage Enrollment Decline for 2025

(Reuters) – Humana (NYSE:HUM) announced a decrease in total members enrolled in its highly rated Medicare Advantage plans for those aged 65 and over for 2025. This news caused the insurer’s shares to drop approximately 12% in premarket trading.

The company reported that about 1.6 million members, which is 25% of its total, are currently enrolled in plans rated 4 stars and above for 2025, a significant decrease from 94% in 2024.

Additionally, Humana stated that the star rating for one of its contracts has declined to 3.5 from 4.5 in 2024, which is significant since this contract accounts for about 45% of Humana’s Medicare Advantage memberships.

The reduction in star ratings for 2025 is expected to have an effect on Humana’s quality bonus payments in 2026.

Formal details on the star ratings for 2025 are anticipated to be released by the Centers for Medicare & Medicaid Services around October 10th.