New York, Jan 29, 2026, 14:25 EST — Regular session
- After tumbling over the past two days, Humana shares climbed roughly 1.5% in afternoon trading
- Managed-care stocks took a hit after the U.S. floated a plan for nearly flat Medicare Advantage payment rates in 2027
- Attention now turns to Humana’s results due Feb. 11 and the Medicare rate decision set for April
Humana Inc. shares gained roughly 1.5%, reaching $196.94 by Thursday afternoon, following a close of $194.01 on Wednesday.
The stock has struggled to stabilize after U.S. regulators suggested a 2027 Medicare Advantage payment increase that fell well short of expectations—a crucial revenue source for major insurers. Baird analyst Michael Ha cautioned that the rates “will likely be insufficient,” potentially pushing companies to cut benefits or drop plans to maintain margins. (Reuters)
The Centers for Medicare & Medicaid Services announced a proposal to increase average Medicare Advantage payments by 0.09% in 2027, translating to over $700 million. The agency also highlighted plans to tighten “risk adjustment,” the system that boosts payments for sicker patients. CMS Administrator Dr. Mehmet Oz said these changes seek to enhance “payment accuracy” while maintaining consistent plan options and benefits. (Centers for Medicare & Medicaid Services)
The shock stems in part from the shift in expectations. CMS’s 0.09% proposal is a sharp drop from the 5.06% hike this year, Barron’s reported, forcing investors to rethink what “normal” profits in Medicare Advantage should be. (Barron’s)
Humana plunged 21.13% Tuesday, ending the day at $207.93 after the rate proposal rattled the sector, Yahoo Finance reported. (Yahoo Finance)
Shares slipped further Wednesday, ending at $194.01, down 6.69% for the session, according to Wall Street Journal market data. (Wall Street Journal)
The selloff hit managed-care stocks hard. UnitedHealth plummeted nearly 20% on Tuesday, according to Investopedia, with Humana tumbling about 21%. CVS and Elevance also took significant hits following the CMS update. (Investopedia)
The next step isn’t set in stone yet. CMS has set a deadline for comments by Feb. 25, with the final rate announcement due by April 6. That leaves a sliver of hope for the industry that the changes might be less severe, but the threat of policy shifts remains very much alive. (Centers for Medicare & Medicaid Services)
Humana has a key date on the horizon. The company plans to report fourth-quarter 2025 results on Feb. 11. That same morning, a call is scheduled, expected to cover 2026 guidance and their Medicare Advantage strategy. (Humana)
