A Healthcare Dive analysis of highly anticipated stars data shows a mixed bag of winners and losers, though — as expected — the quality scores slipped overall.
Medicare Advantage star ratings are slipping in 2027, though one major insurer clinched an extreme upgrade.
Humana, which suffered a major ratings collapse two years ago, saw the percentage of its members in 4+ star plans rocket from 41% in 2026 to 93% in 2027, according to a Healthcare Dive analysis of stars data released Thursday by the CMS.
Insurers jockey aggressively for higher stars, given the ratings are directly tied to lucrative bonuses and competitive advantages in MA. In particular, insurers want to get above the 4-star threshold, which translates to higher bonus payments and larger rebates if plans submit bids below the CMS’ benchmark for the coming year.
As such, it’s a big boost for Humana as the insurer, the second-largest in MA, works to resuscitate profits pressured by unexpectedly high medical spending. Humana’s stars performance hasn’t helped: the company’s members in plans rated at least 4 stars dropped from 94% in 2024 to 25% in 2025, and again to 20% in 2026.
Humana had promised investors that stars would be “meaningfully higher” in 2027. And now, the Kentucky-based payer has followed through, managing to get its largest contract back above the 4-star cutoff for extra bonus payments.
The achievement could net Humana $3 billion or more in extra revenue in 2028, the year that payment will be adjusted based on 2027 stars, according to TD Cowen analyst Ryan Langston.
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