Humana's 2027 Medicare ratings exceed bonus goal
Humana continues to expect at least $9.00 in adjusted EPS for FY 2026 as it completes its September-period close.
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Form Type
8-K
Rhea-AI Filing Summary
Humana said its final 2027 Medicare Advantage Star Ratings results for Bonus Year 2028 exceeded its Top Quartile goal, defined as Stars revenue per member per month 10% above the peer-group median. Actual 2028 Stars revenue PMPM will depend on membership and contract mix, risk scores, benchmarks and rebates. Humana expects a benefit for 2028 to be used for one-time investments and shareholder returns, and expects some outperformance relative to Top Quartile to be one-time in nature.
Humana affirmed FY 2026 adjusted EPS guidance of at least $9.00 per common share and expects no change to that non-GAAP guidance. The guidance is preliminary while Humana completes its financial close and review; it expects potential changes to GAAP EPS guidance due to value-creation and other strategic initiatives. Humana intends to share more about the expected level and use of the 2028 benefit before or when it gives detailed 2028 guidance on its fourth-quarter 2027 earnings call. A virtual investor update is scheduled for December 10, 2026.
8-K Event Classification
Item 7.01 — Regulation FD Disclosure
1 item
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Key Figures
FY 2026 adjusted EPS guidance: At least $9.00 per common share
Top Quartile threshold: 10% above peer-group median
Baseline rebate retention: 50%
+3 more
6 metrics
FY 2026 adjusted EPS guidance
At least $9.00 per common share
Guidance for the year ending December 31, 2026
Top Quartile threshold
10% above peer-group median
Defined using Stars revenue per member per month
Baseline rebate retention
50%
Baseline excluded from Stars revenue
Consistent 3.0 benchmark
$1,370
Used to normalize the Stars revenue PMPM calculation
Consistent risk score
1.15
Used to normalize the Stars revenue PMPM calculation
Consistent rebate
$222
Benefits used in the normalized calculation equated to this rebate
Key Terms
Stars revenue per member per month (PMPM), Bonus Year 2028, Adjusted EPS, Generally Accepted Accounting Principles (GAAP)
4 terms
Stars revenue per member per month (PMPM) financial
"Stars revenue per member per month (PMPM) 10% above the peer group median"
Bonus Year 2028 financial
"final 2027 Medicare Advantage (MA) Star Ratings data (Bonus Year 2028)"
Adjusted EPS financial
"at least $9.00 in adjusted earnings per common share (Adjusted EPS)"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
Generally Accepted Accounting Principles (GAAP) financial
"the most directly comparable Generally Accepted Accounting Principles (GAAP) financial measure"
A set of standardized rules and methods companies use to prepare and report financial statements, like a common recipe or rulebook for presenting money matters. It helps ensure numbers are prepared consistently so investors can compare results, spot trends, and judge a company’s health without being misled by different accounting tricks. Reliable, comparable reports make investment decisions and valuations more informed and less risky.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Humana (HUM) report about its 2027 Medicare Advantage Star Ratings?
Humana said its final 2027 Medicare Advantage Star Ratings exceeded its Top Quartile goal for Bonus Year 2028. Top Quartile is defined as Stars revenue PMPM 10% above the peer-group median, using Centene, CVS, Elevance, HCSC and United as peers.
What is Humana's FY 2026 adjusted EPS guidance?
Humana affirmed FY 2026 adjusted EPS guidance of at least $9.00 per common share. The guidance is preliminary while Humana completes the financial close for the three and nine months ended September 30, 2026; it expects no change to adjusted EPS guidance but expects potential changes to GAAP EPS guidance.
When will Humana provide more details about its expected 2028 benefit?
Humana intends to share the expected level and use of the 2028 benefit before or when it gives detailed 2028 financial guidance on its fourth-quarter 2027 earnings call. It said that information will follow further insight into competitive dynamics, the rate and regulatory environment, and expected contract and membership mix.
When is Humana's investor update?
Humana plans a virtual investor update on December 10, 2026, to provide a mark to market against the framework from its 2025 Investor Day, including initiatives expected to support earnings growth through 2028.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 9, 2026 (October 9, 2026)
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
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Item 7.01 Regulation FD Disclosure.
Supplementary Audio Commentary
Supplementary audio commentary from Humana’s President and Chief Executive Officer, Jim Rechtin, may be accessed via Humana’s Investor Relations page at https://humana.gcs-web.com/.
2027 Medicare Advantage Star Ratings
Based on final 2027 Medicare Advantage (MA) Star Ratings data (Bonus Year 2028) provided by the Centers for Medicare and Medicaid Services (CMS) on October 8, 2026, Humana Inc. (“the Company”) has exceeded its goal of Top Quartile results, which is defined as Stars revenue per member per month (PMPM) 10% above the peer group median.
Notes:
(1) Peer group includes Centene, CVS, Elevance, HCSC, and United
(2) Stars revenue PMPM is defined as the incremental revenue associated with obtaining a 3.5, 4, or 4.5 Star rating, inclusive of the incremental rebate retained and the quality bonus payment received for a 4 Star rating (a 50% rebate retention is assumed to be the baseline and not included as Stars revenue)
(3) the calculation utilizes:
•a consistent 3.0 benchmark of $1,370, a consistent risk score of 1.15, and consistent benefits equating to a rebate of $222 for all payers to normalize for the impact of plan design, geographic mix, and membership mix
•current membership and contract distribution per the CMS membership files dated September 2026 for all payers
(4) actual 2028 Stars revenue PMPM for Humana and the peer group will be different than presented above as it will be dependent upon actual 2028 membership and contract mix, as well as actual 2028 risk scores, benchmark, and rebates for each respective payer
As a reminder, the Company intends to manage its product and benefit structure assuming performance that approximates Top Quartile results. Further, the Company anticipates some of the outperformance in BY28 relative
to Top Quartile will be one time in nature, and it will manage its expenses as such. As a result, the Company expects a benefit for 2028 that will be utilized for one-time investments and return to shareholders. The Company will share more on the level of and expected use of the one-time benefit once it has more 2028 information, including insight into competitive dynamics and the rate and regulatory environment, along with a view of its expected contract mix and membership size and mix. The Company intends to share this information prior to or when giving detailed 2028 financial guidance on the fourth quarter 2027 earnings call.
The Company believes it is well positioned to deliver on its commitment of unlocking the earnings potential of the business by 2028 as laid out at its 2025 Investor Day, supported by its expanded membership base, return to Top Quartile Stars results, and continued discipline across pricing, clinical excellence, operating efficiencies and capital allocation.
As previously announced, the Company will hold a virtual investor update on December 10th, 2026, to provide a mark to market against the framework laid out at its 2025 Investor Day, including the initiatives expected to support earnings growth through 2028.
2026 Earnings Guidance
Humana affirms its guidance of at least $9.00 in adjusted earnings per common share (“Adjusted EPS”), for the year ending December 31, 2026 (“FY 2026”). This guidance is consistent with the guidance issued in Humana’s press release dated July 29, 2026 and subsequently affirmed in the Form 8-K filed with the Securities and Exchange Commission on September 1, 2026.
At this time, the Company is unable to provide a reconciliation of its guidance for FY 2026 Adjusted EPS to FY 2026 diluted earnings per common share (“EPS”), the most directly comparable Generally Accepted Accounting Principles (“GAAP”) financial measure, without unreasonable effort because, at this time, the Company is completing the financial close process for the three and nine-month periods ended September 30, 2026. Accordingly, the financial guidance described herein is preliminary, based upon information currently available, and remains subject to change as the company completes its customary closing and review procedures. The Company does not expect changes to its FY 2026 Adjusted (non-GAAP) EPS guidance. The Company does expect potential changes to its FY 2026 GAAP EPS guidance due to its ongoing value creation and other strategic initiatives.
Cautionary Statement
This Current Report on Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, generally including the words or phrases like “expects,” “believes,” “anticipates,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions that are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the Company’s SEC filings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| HUMANA INC. | |||||
| BY: | /s/ John-Paul W. Felter | ||||
| John-Paul W. Felter | |||||
| Senior Vice President, Chief Accounting Officer & Controller | |||||
| (Principal Accounting Officer) | |||||
Dated: October 9, 2026