01—Abstract
Summary
Summary of the 8-K filed October 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. filed a Regulation FD disclosure on October 2, 2025, after preliminary 2026 Medicare Advantage (MA) Star Ratings data from the Centers for Medicare and Medicaid Services (CMS) was inadvertently accessible on CMS Plan Finder on October 1, 2025.
Approximately 1.2 million members, or 20%a of the company's membership, are currently enrolled in plans rated 4 stars and above for 2026, with an average Star rating of 3.61, consistent with its 2025 average. The company states that 14% of members are in 4.5-star plans in 2026, up from 3% in 2025. Humana says the preliminary ratings are generally in line with the assumptions in its multiyear financial planning, so it is not changing the 2025 to 2028 incremental earnings potential shared at its June 16, 2025 Investor Conference.
The company says it is not satisfied with its 2026 Star Ratings but expects a return to Top Quartile results for the 2027 Star Ratings. Humana also affirmed its FY 2025 guidance of approximately $13.77b in diluted GAAP EPS and approximately $17.00 in Adjusted EPS, which is consistent with its July 30, 2025 press release and its August 29, 2025 Form 8-K.
The company states it does not expect changes to FY 2025 Adjusted EPS guidance, but it does expect changes to its FY 2025 GAAP EPS guidance, to be reported in its third-quarter 2025 earnings release, due to ongoing value creation and other strategic initiatives. The company remains confident in its 2026 Individual MA pricing and benefit design, including the expectation of doubling individual MA pre-tax margin in 2026 (excluding Stars), and believes it is positioned to return to membership growth in 2026.
02—Key points
Key Highlights
- Preliminary 2026 MA Star Ratings: about 1.2 million members (20%) are in plans rated 4 stars and above, with an average Star rating of 3.61, consistent with the 2025 average.
- Members in 4.5-star plans are expected to rise to 14% in 2026 from 3% in 2025.
- Preliminary 2026 Star Ratings are generally in line with multiyear financial planning assumptions, and the 2025 to 2028 incremental earnings potential is unchanged.
- The company expects a return to Top Quartile Star Ratings results for 2027, and says the percentage of members in 4-star-plus contracts in 2027 is expected to be meaningfully higher than 20% due to its MA contract diversification strategy starting with the 2026 Annual Election Period on October 15, 2025.
- FY 2025 guidance affirmed: approximately $13.77 diluted GAAP EPS and approximately $17.00 Adjusted EPS.
- The company does not expect changes to FY 2025 Adjusted EPS guidance but expects changes to FY 2025 GAAP EPS guidance, to be reported in its third-quarter 2025 earnings release.
- The company expects to double individual MA pre-tax margin in 2026 (excluding Stars) and believes it is positioned to return to membership growth in 2026.
03—Questions
Frequently Asked Questions
Why did Humana disclose preliminary 2026 Star Ratings data?
The filing states that preliminary 2026 MA Star Ratings data provided by CMS was inadvertently accessible on CMS Plan Finder for a period of time on October 1, 2025, and Humana is disclosing that data under Regulation FD.
Does the 2026 Star Ratings outcome change Humana's earnings outlook?
No. Humana states the preliminary 2026 Star Ratings are generally in line with its multiyear financial planning assumptions, so there is no change to the 2025 to 2028 incremental earnings potential shared at its June 16, 2025 Investor Conference.
What is Humana's FY 2025 earnings guidance?
Humana affirmed guidance of approximately $13.77 in diluted GAAP EPS and approximately $17.00 in Adjusted EPS for the year ending December 31, 2025. The company says it does not expect changes to Adjusted EPS guidance but does expect changes to GAAP EPS guidance, to be reported in its third-quarter 2025 earnings release.
What does Humana expect for the 2027 Star Ratings and its contract mix?
Humana continues to anticipate a return to Top Quartile results for the 2027 MA Star Ratings. It is executing an MA contract diversification strategy starting with the 2026 Annual Election Period beginning October 15, 2025, which it expects will make the share of members in contracts rated 4 stars and above in 2027 meaningfully higher than approximately 20%.
What is Humana's outlook for individual Medicare Advantage in 2026?
Humana remains confident in its 2026 Individual MA pricing and benefit design, including the expectation that it will double individual MA pre-tax margin in 2026 (excluding Stars), and believes it is positioned to return to membership growth in 2026.
04—Continue