Humana cut its full-year earnings outlook on Wednesday as lower Medicare Advantage Star Ratings reduced the quality bonuses it receives from the federal government.
The health insurer revised its full-year GAAP earnings target to a minimum of $6.52 per share, compared with its earlier projection of at least $8.36 per share
The adjusted forecast, however, was left intact at a minimum of $9 per share. The Medicare Advantage Star Ratings, which run on a scale of one to five, are tied to bonus payments from the Centers for Medicare and Medicaid Services. A significant decline in the number of Humana’s plans rated four stars or higher has weighed on its 2026 bonus payments, the company said.
Humana’s second-quarter profit came in at $694 million, or $5.73 per share, versus $545 million, or $4.51 per share, in the same period last year. Total revenue rose 26% to $40.87 billion. On an adjusted basis, the company earned $7.61 per share in the quarter.