CVS and UnitedHealth lost ground on Medicare ratings. Who gained? Harry Jones Fri, November 6, 2026 at 9:39 AM EST 4 min read HUM +4.69% UNH +0.09% CVS +3.06% ^GSPC +1.17% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Investing.com — Medicare Advantage, the private Medicare plans for seniors, has been the sore spot for health insurers, as outpatient surgeries and GLP-1 drugs lift medical costs. On October 8, the government published its 2027 Star Ratings on October 8, the yearly report card for these plans.
Humana (NYSE:HUM) surged as much as 16.5% as its flagship plan rose to four stars. J.P. Morgan sees UnitedHealth Group (NYSE:UNH) and CVS Health (NYSE:CVS) falling to 67% and 70% of members in four-star-plus plans, from 81% and 84%.
A data-driven screen can test which insurer turns that into earnings, and ProPicks AI, InvestingPro's set of AI-picked strategies, has held Humana since August in Beat the S&P 500 and Healthcare Heroes. With November's list now live, Humana's large-cap companions are a streaming leader, a commercial aviation supplier and a global travel booking network.
See the large-cap leaders in November's AI-picked list: Explore the Beat the S&P 500 strategy on InvestingPro
Humana is the second-largest Medicare Advantage insurer in the U.S., with about 20% of all MA enrollment in 2026, and the Star Ratings decide how much federal quality bonus money it can collect. Its flagship H5216 contract climbed to four stars from 3.5, which restores that eligibility. The share of members in plans rated four stars or higher jumps to 95% in 2027 from 20% in 2026, far above the 60% to 70% J.P. Morgan had expected. Evercore ISI estimates the change could bring $4.8 billion in bonus payments in 2028, and Baird, Cantor Fitzgerald and Barclays all upgraded the stock around the release.
The same measure fell from 94% to 25% in 2024, so the gains are not locked in. Cost pressure has not gone away either. Humana's insurance benefit ratio rose to 91.2% in the second quarter from 89.9%, and it plans to exit certain MA plans in 2027, affecting about 600,000 members, as it reprices and trims the book. Even so, total MA membership reached 7.18 million in the second quarter, up 23.8% from a year earlier, and the CenterWell unit adds primary care clinics, home health and pharmacy services. A joint venture with BlackRock manages nearly 150 senior primary care clinics, which brings in growth capital.
Wall Street consensus estimates compiled on InvestingPro put 2026 EPS at $9.14, a 47% drop, before a rebound to $17.31 in 2027 and $28.34 in 2028. That leaves the forward P/E at 45.7x on this year's depressed profit, but 24.1x on 2027 and 14.7x on 2028. Analysts remain split though, as over the past 90 days, 17 EPS revisions were downward against six upward, and analyst price targets range from $280 to $596.
Humana also comes out ahead of UnitedHealth on recent performance. Humana returned 47.8% over the past year versus 22.4% for UnitedHealth, and revenue grew 18.3% versus 3.42%. InvestingPro's Financial Health framework, which benchmarks companies across more than 100 indicators, rates Humana's profitability 7/10 and cash flow 6/10, but growth only 4/10, with 2026 EPS down 47%. Humana has also paid dividends for 16 consecutive years, and its 0.74 beta points to lower volatility than the broader market. Since ProPicks AI added the stock in August, ahead of the ratings, it is up 15.3%.
The Humana Pro Research Report goes deeper on medical cost trends, the Star Ratings history and the earnings path through 2028, so the case can be checked against the full numbers.
Check Humana's medical cost trend and Star Ratings history: Access the Humana Pro Research Report on InvestingPro
For much of the year, Humana's story was about rising medical costs. The new Star Ratings have moved that conversation toward the bonus income due in 2028, and analysts expect earnings to start recovering a year before then. Costs still need watching, with the benefit ratio at 91.2%, yet the outlook looks steadier than it did a few months ago.
Ratings and cost trends can move quickly from one year to the next, which is why ProPicks AI revisits its picks with fresh InvestingPro data every month. Humana currently holds a place in both Beat the S&P 500 and Healthcare Heroes, and the large-cap list pairs it with leaders in streaming, aerospace and online travel. For $9 a month, full access to all ProPicks AI strategies opens each of those lists.
Check out November's health picks along with every other strategy: Explore all the AI-picked strategies on InvestingPro
Disclosure: The author holds no position in the stocks mentioned. Data and financial metrics as of October 30, 2026.
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