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, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Humana Inc. (NYSE: HUM) breached their fiduciary duties to shareholders.
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Insurers spent the summer telling Wall Street exactly which Medicare Advantage plans are disappearing on December 31. Enrolled members get a letter in October, a closing enrollment window in December, and a rare legal protection most will never realize they…
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Somewhere inside the Centers for Medicare & Medicaid Services (CMS) sits the list of Medicare Advantage plans that will stop existing on December 31, 2026. Insurers submitted their 2027 bids in June. Wall Street analysts have dissected the implications on earnings calls all summer. The people enrolled in those plans will find out by mail.
Members of continuing plans must receive an Annual Notice of Change by September 30. Someone whose plan is disappearing receives a separate nonrenewal notice by October 2. That leaves 90 days before the coverage ends, but only 66 days before Medicare Open Enrollment closes on December 7. Humana has confirmed that its 2027 plan exits will affect roughly 600,000 members. Other carriers are also shrinking their Medicare Advantage footprints. For anyone whose plan receives a nonrenewal notice, the letter opens a rare Medigap window that is remarkably easy to waste.
What the Carriers Already Told Their Shareholders Humana (NYSE:HUM | HUM Price Prediction) said on its July 29, 2026 earnings call that 2027 plan exits will affect “approximately 600,000 members” and that “the majority of the plan exits were in plans with three and a half or lower ratings.” CFO Celeste Mellet described the strategy as cutting off “the lower tail of profitability.”
UnitedHealth Group (NYSE:UNH) told analysts on July 16, 2026 it expects “full-year Medicare Advantage enrollment to decline by approximately 1.1 million” and previewed “selective changes in market participation” for 2027. Press reporting has named 109 counties UnitedHealthcare is exiting.
Elevance Health (NYSE:ELV) already ran its playbook: Medicare Advantage membership fell 15.9% year over year in Q2. CFO Mark Kaye told investors the 2027 bids “placed an emphasis on plans where we can deliver sustainable value for seniors, particularly dual eligible members.” Plans that did not clear that bar were not refiled.
Centene (NYSE:CNC) is doing the same in miniature. CEO Sarah London said the plan is to “further simplify our Medicare Advantage footprint focusing our benefits increasingly on the duals population.”
The Door That Usually Stays Closed When an Advantage plan does not renew, Medicare opens a Special Enrollment Period (SEP) from December 8, 2026, through February 28, 2027. The termination also gives members who return to Original Medicare a guaranteed-issue right to buy certain Medigap policies.
That protection begins 60 days before the existing coverage ends and continues for 63 days afterward. During the window, a Medigap insurer cannot deny coverage or charge more because of the applicant’s health history. For someone well past the initial six-month Medigap enrollment period, that is a door that may have been closed for years.
The catch is the destination, not which enrollment period the member uses. Someone who chooses another Advantage plan is not exercising the Medigap right because they are not returning to Original Medicare. They should not assume they can reconsider later and recover the same federal protection.
A $0 Premium Is Only Half the Math The standard $202.90 Part B premium follows a member into either Original Medicare or Medicare Advantage. The added cost of returning to Original Medicare is a Medigap premium—perhaps $150 to $250 monthly, depending on the applicant and location—plus a standalone Part D plan.
In return, Plan G covers most Part A and Part B cost-sharing after the $283 Part B deductible. A $0-premium Advantage plan costs less upfront, but its in-network out-of-pocket maximum can reach $9,250 in 2026, alongside network restrictions and prior authorization.
The real question is which structure the member can afford during a bad medical year, especially if health later makes Medigap unavailable. Premium math is only half the picture either way: IRMAA surcharges and coverage gaps can quietly add thousands a year, which is why we mapped the full set of Medicare traps in a free guide here.
What to Do Sooner Than Later The notice creates a short period in which both coverage systems are genuinely available, so three details deserve attention:
Open and save the nonrenewal notice. It documents the plan termination and the guaranteed-issue event. Price Original Medicare, Medigap and Part D together before selecting another Advantage plan. Standardized Medigap coverage can carry sharply different premiums across insurers. Compare any replacement Advantage plan’s doctors, drug formulary, authorization rules and out-of-pocket maximum. Ask the broker to price both paths before recommending either one. The insurer decided which plan disappears. For a brief window, the member gets an unusually clean choice about what comes next and health history does not get a vote.
Contact [email protected] for any questions or corrections.
Humana's non-renewal letters are already in the mail, and the deadline to act is closer than most affected members realize. Missing it by even one day changes what coverage options remain available and how much they cost.
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Humana (NYSE: HUM | HUM Price Prediction) non-renewal letters start hitting mailboxes in early October, and the company is pulling plans covering roughly 600,000 Medicare Advantage members for 2027. If one of those letters shows up with your name on it, the danger is not that Medicare disappears. It is where Medicare puts you if you do nothing.
On January 1, 2027, you return to Original Medicare without a standalone Part D drug plan or Medigap policy. Coverage remains, but two layers of protection disappear overnight, and your limited chance to replace one of them is already running.
Default Landing: Original Medicare, Bare When a Medicare Advantage plan does not renew, members who choose no replacement are automatically enrolled in Original Medicare on January 1. That sounds harmless. It is not. Original Medicare in 2026 means a $202.90 monthly Part B premium, a $283 annual Part B deductible and a $1,736 Part A inpatient deductible for each benefit period. Starting on day 61 of a hospital stay, coinsurance reaches $434 a day. Skilled nursing care costs $217 a day from days 21 through 100.
Most important, Original Medicare has no annual out-of-pocket maximum. Your old Advantage plan capped your exposure. The default landing does not, and the surcharges and coverage gaps that catch retirees off guard go well beyond the headline premium (we mapped the worst offenders in a free Medicare guide if you want the full list).
Drug Coverage Disappears With the Plan If you were enrolled in a Medicare Advantage prescription drug (MA-PD) plan, its drug benefit ends with the plan. Members who do not choose another MA-PD plan or a standalone Part D plan begin January without prescription coverage. Some beneficiaries receiving Extra Help may be automatically enrolled or reassigned to another drug plan, but they should confirm that coverage rather than assume the handoff occurred.
The immediate consequence is paying for prescriptions without Part D coverage. A longer lapse can create another problem: going 63 consecutive days without creditable drug coverage can trigger a late-enrollment penalty equal to 1% of the national base premium for every uncovered month. In most cases, that penalty follows the beneficiary for as long as Part D coverage continues.
The Window Extends Beyond the Coverage Medicare gives members whose plans are ending a Special Enrollment Period (SEP) from December 8 through the final day of February. That sounds generous until the effective dates enter. A replacement selected in January generally begins February 1. One selected in February begins March 1. During the gap, prescriptions may be entirely out of pocket. Original Medicare still covers eligible imaging, specialist visits and other Part B services, but its deductible and usually 20% coinsurance apply without Medigap protection.
The regular Medicare open-enrollment period closes December 7, but the non-renewal SEP continues afterward. To have replacement coverage begin January 1, the member must make the choice by December 31.
Medigap Comes With Its Own Clock Federal law gives affected members guaranteed-issue Medigap rights beginning 60 days before their Advantage coverage ends and continuing for 63 days afterward. Inside that window, an insurer cannot reject the application or charge more because of health history.
Someone eligible for Medicare on or after January 1, 2020, can generally purchase Plans A, B, D, G, K or L. Those eligible before that date may also choose Plans C or F. Availability still depends on which policies insurers sell in the state. Outside the federal window, insurers in most states may use medical underwriting. A prior heart attack, cancer history or diabetes can lead to a denial or higher premium, although some states provide stronger protections and another qualifying event can create new guaranteed-issue rights later.
December Is the Month That Matters Three decisions should be made before the old plan disappears:
Choose another Advantage plan or Original Medicare with standalone Part D coverage by December 31. If moving to Original Medicare, apply for Medigap while guaranteed-issue rights remain open. Run every current prescription through Medicare Plan Finder because formularies, tiers and preferred pharmacies change. The letter is not merely notice that a plan is closing. Answer it before December ends, and January 1 becomes a handoff instead of a coverage cliff.
Contact [email protected] for any questions or corrections.
A retirement community's top health provider quietly told the government it had been overbilling Medicare for years, then filed for bankruptcy before the consequences arrived. What happened next reshaped who owns the clinics, who absorbs the loss, and what federal…
The Justice Department’s late August 2026 announcement of a $541.5 million settlement with The Villages Health was framed around the coding period, but the sharpest number in the record came from the company’s own file, according to Healthcare Dive. According to Healthcare Dive, by 2024 about half of the primary care provider’s patient diagnosis codes were unsupported, based on an outside consultant’s review. The provider serves the largest retirement community in the United States. Its coding book, by that measure, had come untethered from its patients’ actual medical conditions.
What the Coding Allegedly Was The U.S. Department of Justice alleges that from 2020 to 2024, the company submitted false diagnosis codes for Medicare Advantage patients to increase its reimbursement in the privatized Medicare program. Per the settlement, the company altered patient medical records and inserted additional diagnosis codes, in some cases years after the visit occurred. Unsupported codes included severe obesity, blood defects and immunodeficiency, submitted to Humana (NYSE:HUM | HUM Price Prediction), UnitedHealthcare and Blue Cross Blue Shield of Florida.
Medicare Advantage plans receive a fixed monthly payment per enrollee, adjusted by that person’s diagnoses. A sicker-looking chart produces a larger check. That is the incentive upcoding exploits. The claims resolved are allegations, and there has been no determination of liability.
Timeline: Self-Report to Sale Per Healthcare Dive, The Villages Health identified and notified the government of its overbilling at the end of 2024, sizing its own bill. It then filed for Chapter 11 bankruptcy in the summer of 2025. Humana’s CenterWell division agreed to acquire the operating business in July 2025, according to Healthcare Dive. That stalking-horse bid set off an auction. A bankruptcy court approved the winning bid in the fall of 2025, with the purchase price rising to $68 million, and the deal closed in late 2025, according to Healthcare Dive. CenterWell added eight primary care centers and two specialty care centers to its network, according to Healthcare Dive. The acquisition price and the settlement figure sit on the same page: $68 million and $541.5 million.
How the Settlement Actually Works The settlement is against the pre-sale legal entity, The Villages Health System LLC, still in bankruptcy. Rather than a direct or immediate payment by CenterWell or Humana, the federal government receives an allowed, nondischargeable claim against the bankruptcy estate, to be resolved in the ongoing Chapter 11 process alongside other creditors. The insurers that received the inflated payments are returning those overpayments to the government, with those amounts credited against the total. The company received cooperation credit for self-disclosing through the federal healthcare fraud reporting portal, which is a substantial reason the figure is not higher.
A National Enforcement Pattern Emerges The same month, the Justice Department resolved two other Medicare Advantage upcoding matters: one with Monogram Health, and one with Complete Health, a value-based primary care operator active in three states. Risk-adjustment integrity has become a live enforcement lane. MedPAC has warned in its January 2026 work that upcoding continues to inflate what Medicare Advantage costs the trust fund relative to traditional Medicare.
What It Means for Patients Care in The Villages was not interrupted. The centers remain open under CenterWell ownership, staffed by the same clinicians patients already knew. The bill lands elsewhere: on the Medicare trust fund, which is to say on taxpayers and on the beneficiaries who fund and draw from it. That is the constituency this settlement was written to make whole.
Contact [email protected] for any questions or corrections.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) announced today that its Board of Directors has declared a cash dividend to stockholders of $0.885 per share payable on November 27, 2026 to stockholders of record as of the close of business on October 30, 2026.
About Humana
Humana (NYSE: HUM) is a leading U.S. healthcare company. Through our Humana insurance services and our CenterWell healthcare services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare and Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.
LOUISVILLE, Ky.--(BUSINESS WIRE)--The Humana Foundation, the philanthropic arm of Humana Inc. (NYSE: HUM), today announced 80 winners of college scholarships awarded through the Humana Foundation Scholarship Program. Scholarships provide up to $3,000 for postsecondary education, including degree, vocational and technical programs, for children of Humana employees. Annual awards are renewable for up to three years or until completion of a degree or program with a total possible award of $12,000.
Caisse de depot et placement du Quebec purchased a new stake in Humana Inc. (NYSE:HUM – Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 2,312 shares of the insurance provider’s stock, valued at approximately $918,000.
Several other hedge funds also recently made changes to their positions in the company. Wilkerson Advisory Group LLC grew its stake in Humana by 24.6% during the 2nd quarter. Wilkerson Advisory Group LLC now owns 167 shares of the insurance provider’s stock worth $66,000 after buying an additional 33 shares during the last quarter. Bogart Wealth LLC grew its position in Humana by 192.0% in the 2nd quarter. Bogart Wealth LLC now owns 73 shares of the insurance provider’s stock valued at $29,000 after buying an additional 48 shares during the last quarter. Fiduciary Alliance LLC increased its stake in shares of Humana by 0.9% during the first quarter. Fiduciary Alliance LLC now owns 5,628 shares of the insurance provider’s stock worth $976,000 after acquiring an additional 49 shares during the period. Sanctuary Advisors LLC increased its position in Humana by 1.6% during the 4th quarter. Sanctuary Advisors LLC now owns 3,389 shares of the insurance provider’s stock worth $868,000 after purchasing an additional 52 shares during the period. Finally, Horizon Investments LLC grew its holdings in Humana by 2.5% during the fourth quarter. Horizon Investments LLC now owns 2,236 shares of the insurance provider’s stock worth $573,000 after acquiring an additional 55 shares during the period. Hedge funds and other institutional investors own 92.38% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have recently issued reports on HUM shares. Sanford C. Bernstein reiterated an “outperform” rating and issued a $425.00 price target on shares of Humana in a report on Wednesday, June 3rd. Guggenheim boosted their price objective on shares of Humana from $269.00 to $471.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Wolfe Research restated an “outperform” rating and set a $450.00 target price on shares of Humana in a research report on Monday, August 24th. Mizuho increased their target price on shares of Humana from $335.00 to $390.00 and gave the company an “outperform” rating in a report on Monday, June 8th. Finally, TD Cowen lifted their price target on shares of Humana from $350.00 to $370.00 and gave the company a “hold” rating in a research report on Friday, July 31st. Fourteen equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $403.91.
Read Our Latest Analysis on Humana Humana Stock Up 0.4% Humana stock opened at $386.92 on Monday. Humana Inc. has a fifty-two week low of $163.11 and a fifty-two week high of $428.88. The firm has a market capitalization of $46.46 billion, a price-to-earnings ratio of 36.61, a price-to-earnings-growth ratio of 2.20 and a beta of 0.72. The stock’s fifty day moving average is $385.60 and its two-hundred day moving average is $289.17. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.74 and a current ratio of 1.74.
Humana (NYSE:HUM – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.27 by $0.34. Humana had a return on equity of 11.20% and a net margin of 0.88%.The business had revenue of $40.89 billion during the quarter, compared to the consensus estimate of $40.58 billion. During the same quarter in the previous year, the company posted $6.27 EPS. The business’s revenue was up 26.2% on a year-over-year basis. Analysts predict that Humana Inc. will post 9.12 EPS for the current fiscal year.
About Humana (Free Report)
Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
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Key Takeaways Humana's Medicare Advantage membership grew 23.8% year over year in the second quarter of 2026.CenterWell revenues rose 22.6% as Humana expanded its senior-focused primary care footprint.Rising medical costs and higher leverage are weighing on Humana's profitability and margins. Humana Inc. (HUM - Free Report) benefits from a strong care delivery model centered on value-based care, increasing premiums, strategic acquisitions, an aging population in the United States and solid cash generation capacity. HUM’s shares have surged 55.7% in the year-to-date period compared with the industry’s growth of 20.9%.
Humana offers health insurance benefits through Health Maintenance Organization, Private Fee-For-Service and Preferred Provider Organization plans. It also provides specialty products such as dental, vision and other supplementary benefits.
Courtesy of solid prospects, HUM currently carries a Zacks Rank #3 (Hold).
Where Do Estimates for HUM Stand?The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.12 per share, which remained stable over the past seven days. Furthermore, the consensus mark for revenues is pegged at $162.6 billion for 2026, indicating a 25.3% year-over-year rise. It beat earnings estimates in each of the past four quarters, with an average surprise of 9.6%.
HUM’s Growth DriversHumana’s Medicare Advantage business remains a key growth engine, with membership expansion providing a foundation for improving the earnings potential of the portfolio. The company is also benefiting from stronger engagement among members. In the second quarter of 2026, total Medicare Advantage membership grew 23.8% year over year. Meanwhile, total premiums increased 26.4% year over year to $38.8 billion.
CenterWell is adding another growth avenue by expanding its senior-focused primary care footprint while using its pharmacy and home health businesses to build a more integrated care platform. The strategy combines organic patient growth with targeted acquisitions and greater integration across its care delivery businesses. CenterWell’s revenues increased 22.6% year over year in the second quarter of 2026.
The company is expanding its Medicaid footprint through the statewide Illinois contract scheduled to begin in January 2027, giving additional opportunities to diversify growth beyond its core Medicare Advantage business. HUM is using targeted capital allocation to strengthen its healthcare delivery capabilities. The planned divestiture of its minority stake in Gentiva, valued at approximately $900 million, is expected to largely fund the acquisition of MaxHealth. The transaction fits with Humana’s broader focus on expanding CenterWell and building a more integrated care platform.
Humana is also incorporating technology, automation and AI into its efforts to improve operating efficiency and simplify its business model. The company is transforming selected vendor relationships into more strategic technology-enabled partnerships while integrating acquired operations onto common platforms.
HUM’s solid financial position also provides flexibility to support growth and shareholder returns. As of June 30, 2026, the company had cash, cash equivalents and investment securities of $23.9 billion. It has been returning excess capital to its shareholders in the past several years. Humana repurchased common shares worth $108 million in the first half of 2026. It also paid a dividend of $214 million in the first half of 2026.
Key Concerns for HUM StockDespite its strengths, there are challenges to monitor.
Humana is facing rising medical cost intensity, which is weighing on profitability. Total operating expenses have steadily increased as a share of revenues, reaching 96.7% in second-quarter 2026 from 96.6% a year ago, indicating limited operating leverage. Operating expenses rose 26.3% year over year in the second quarter of 2026. The company expects the benefit ratio for the insurance segment to be 92.75%, with a variability margin of plus or minus 25 basis points for 2026, indicating an increase from the 2025 level of 90.4%.
Humana is grappling with a debt-laden balance sheet, which induces an increase in interest expenses. This might put pressure on the company’s margins. As of June 30, 2026, long-term debt was $12 billion. The company’s total debt-to-capital of 43.1% exceeds the industry average of 41.5%, underscoring higher leverage. Also, its forward P/E of 29.91X is higher than the industry average of 15.99X.
Stocks to ConsiderSome better-ranked stocks in the Medical space are BrightSpring Health Services, Inc. (BTSG - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings of $1.82 per share has witnessed six upward revisions in the past 30 days against no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for current-year revenues is pegged at $15.3 billion, suggesting 18.2% year-over-year growth.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.93 per share has witnessed three upward revisions in the past 30 days, against no movement in the opposite direction. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 30 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.
A month has gone by since the last earnings report for Humana (HUM - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Humana due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Humana Inc. before we dive into how investors and analysts have reacted as of late.
Humana Q2 Earnings Beat Estimates on Medical Membership Growth
Humana reported second-quarter 2026 adjusted earnings of $7.61 per share, which beat the Zacks Consensus Estimate by 22.4%. The bottom line rose 21.4% year over year.
Adjusted revenues improved 26.2% year over year to $40.9 billion. The top line surpassed the consensus mark by 0.6%.
The strong quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its primary care business. A rise in overall medical membership also contributed to the upside. However, the upside was partly offset by escalating operating expenses and a deteriorating benefit ratio.
HUM’s Q2 Operational UpdateHumana’s premiums totaled $38.8 billion, which advanced 26.4% year over year, and surpassed the Zacks Consensus Estimate of $38.6 billion and our estimate of $38.1 billion. Services revenues rose 27.1% year over year to $1.8 billion, beating the consensus mark of $1.7 billion. Investment income of $253 million fell 7% year over year in the quarter under review. However, the metric beat the consensus mark of $235.3 million and our estimate of $241.9 million.
The benefit ratio came in at 91.1%, which deteriorated 140 basis points (bps) year over year. Total operating expenses increased 26.3% year over year to $39.5 billion, higher than our estimate of $38.9 billion. The year-over-year increase was due to higher benefits and operating costs. The adjusted operating cost ratio of 9.7% improved 120 bps year over year.
HUM’s net income increased 27.6% year over year to $693 million but beat our estimate of $562.1 million.
Q2 Segmental Update of HUMInsurance
The segment’s revenues rose 25.9% year over year to $39.1 billion in the second quarter on the back of improved per-member premiums derived from HUM’s Medicare and stand-alone PDP businesses, supported by improved Medicare Advantage benchmark funding from the Centers for Medicare and Medicaid Services and a higher Part D direct subsidy tied to the IRA.
Adjusted operating income grew 7% year over year to $824 million. The benefit ratio deteriorated 130 bps year over year to 91.2%. The operating cost ratio of 7.1% improved 120 bps year over year.
Total medical membership of the segment was 17.9 million as of June 30, 2026, which rose 20.7% year over year. The metric beat the Zacks Consensus Estimate of 17.5 million and our estimate of 17 million.
CenterWell
The unit recorded revenues of $6.8 billion in the quarter under review, which improved 22.6% year over year and surpassed the Zacks Consensus Estimate of $6.3 billion. The metric benefited from higher revenues stemming from the company’s primary care business.
Adjusted operating income rose 27.2% year over year to $514 million. The operating cost ratio of 92.4% improved 30 bps year over year, driven by the ongoing maturation of the v28 risk model update within the company’s primary care business and its cost-cutting and transformation strategy.
Humana’s Financial Update (As of June 30, 2026)Humana exited the second quarter with cash and cash equivalents of $6.9 billion, which rose 64.1% from the 2025-end level. Total assets of $57.2 billion increased 16.9% from the figure at 2025-end.
Long-term debt amounted to $12 billion, down 3.2% from the figure as of Dec. 31, 2025. Debt to capitalization deteriorated 200 bps year over year to 42.7% at the second-quarter end.
Total stockholders’ equity of $19.3 billion advanced 8.8% from the 2025-end figure.
HUM generated net cash from operations of $3.2 billion in the first half of 2026, which more than doubled year over year.
HUM’s Capital Deployment UpdateHumana bought back shares worth $108 million in the first half of 2026. It also paid dividends of $214 million during the same period.
2026 View by HUMRevenues are still projected to be a minimum of $160 billion, which implies a 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are expected to continue to be forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are still expected to be at a minimum of $25 billion.
Adjusted EPS is still projected to be at least $9, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is now projected to be at least $6.52, down from the previously expected guidance of at least $8.36.
Management still anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is still expected to record an increase of roughly 150,000.
Membership from the Individual Medicare stand-alone PDP is still expected to increase around 1,000,000 this year. State-based contracts are still anticipated to witness membership growth within 25,000-100,000.
The GAAP benefit ratio for the Insurance segment is still likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is still expected to be at 10%, with a variability margin of plus or minus 25 basis points.
GAAP cash flow from operations is still estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are still projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5%, while the weighted average share count is anticipated at around 121 million.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -437.83% due to these changes.
VGM ScoresAt this time, Humana has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Humana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerHumana is part of the Zacks Medical - HMOs industry. Over the past month, Molina (MOH - Free Report) , a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
Molina reported revenues of $10.87 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.51 for the same period compares with $5.48 a year ago.
Molina is expected to post earnings of $0.73 per share for the current quarter, representing a year-over-year change of -60.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -17.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Molina. Also, the stock has a VGM Score of C.
A non-renewal notice from Humana can feel like bad news, but buried inside federal Medicare rules is a protection that most long-time Advantage members have no idea they still qualify for.
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A Humana (NYSE: HUM | HUM Price Prediction) Medicare Advantage (MA) member could open the mail in early October and discover that coverage ending December 31 will not be back next year. Humana told investors in July that targeted 2027 exits will affect approximately 600,000 members.
If a non-renewal notice lands in the mailbox, however, do not treat it like routine Medicare paperwork. Losing an MA plan can reopen a federal Medigap opportunity that a longtime enrollee may have assumed disappeared years ago.
October 2 Is Not Just Another Mailing Date Federal rules require a non-renewal notice for coverage ending December 31 to be dated October 2. That gives affected members time to make another choice before Medicare’s annual enrollment period runs from October 15 through December 7.
Humana has been unusually clear about why it is trimming its portfolio. The company said its 2027 strategy includes benefit adjustments and targeted exits as it concentrates on higher-performing coverage and works toward its profitability goals. It expects to retain some affected members by moving them into other Humana offerings.
That may make business sense for the insurer. It does not mean the nearest replacement is automatically right for the person opening the envelope. A policy can disappear even when the member liked the doctors, benefits and premium just fine.
The Medigap Right Hidden Inside the Bad News Normally, someone who has been in Medicare Advantage for years cannot simply return to Original Medicare and assume a Medigap insurer will accept them. Outside protected periods, medical underwriting can stand in the way in most states. A plan exit can change that.
When an MA plan leaves Medicare or stops serving an enrollee’s area, federal law provides a guaranteed-issue Medigap right if the member switches to Original Medicare. That means the insurer cannot reject the applicant, impose a waiting period for pre-existing conditions or charge more because of health.
For someone who developed diabetes, heart disease or another condition after first joining Medicare Advantage, that protection can be enormously valuable. Under the federal rule, the available standardized choices include Plans A, B, C, D, F and G, subject to eligibility. People new to Medicare in 2020 or later generally cannot buy C or F, making Plan G one of the important options to price.
The window can begin before the old coverage even ends. That gives the member time to compare the cost of Original Medicare plus Medigap against the replacement Advantage plans before January arrives.
Do Not Assume Another Advantage Plan Is Waiting Humana expects to recapture a meaningful share of the 600,000 affected members in other coverage. That is an option, not an instruction. The replacement may have a different physician network, drug formulary, specialist copays or out-of-pocket ceiling. A familiar insurer logo does not guarantee a familiar plan.
And doing nothing is its own decision. When an MA contract is not renewed and the member does not choose another Advantage option, Medicare says the person generally returns to Original Medicare when the old coverage ends. Someone leaving an MA plan that included prescription drugs would also need to think about standalone Part D coverage. That is one of several coverage traps we mapped in a free Medicare guide.
Use the Letter to Compare Both Roads When the non-renewal notice arrives, these three steps can turn an unwanted disruption into a useful choice:
Read the notice immediately and mark every enrollment deadline it gives you, including any Special Enrollment Period (SEP) available because the coverage is ending. If Original Medicare appeals to you, price a guaranteed-issue Medigap Plan G before choosing another MA policy. Do not let a health history that normally makes switching difficult keep you from using a right that temporarily removes underwriting. If staying with Medicare Advantage, check the doctors, hospitals and prescriptions that matter to you against the actual 2027 replacement, not the plan you had in 2026. A cancellation letter is hardly welcome mail. But this one can hand a retiree something valuable on the way out: another chance to choose how Medicare coverage fits together.
Contact [email protected] for any questions or corrections.
In this photo, traders work under monitors displaying CVS Health Corp. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 27, 2017. CVS is the parent of Aetna, the nation's third largest health insurance company. Photographer: Michael Nagle/Bloomberg
Following a parade of health insurance company earnings reports this summer, stocks are rising and costs appear to be under control for now.
Take UnitedHealth Group, parent of the nation’s largest health insurer in UnitedHealthcare, reported more than $5 billion in second quarter net income. That came during a period this year when UnitedHealthcare’s medical care ratio continued to fall.
“The second quarter 2026 medical care ratio was 86.7% compared to 89.4% in the second quarter 2025,” the company said of the ratio, which is the percentage of premium revenue that goes toward medical costs. “The year-over-year decrease was driven by benefit design and pricing discipline, member mix and medical cost management initiatives.”
The price of UnitedHealth shares have been flirting with $400 this week, which is up more than 30% compared to a year ago. The price of shares of CVS Health, too, which owns the giant health insurer Aetna, are up more than 30% since last summer.
CVS is like UnitedHealth in that its assets are diversified to include pharmacy benefit management and healthcare providers. It wasn’t long ago that analysts on Wall Street were speculating the vertical integration strategy of CVS and UnitedHealth would soon be a thing of the past but neither company has shown signs of diverging from the strategy of owning both medical care providers and health insurance operations that pay for care.
Meanwhile, shares of other health insurers, including those like Centene and Humana, are also up significantly.
The price of Centene shares has more than doubled in the last year, hovering around $65 a share this week. It was near $30 a share last week. Meanwhile, the price of Humana stock is more than $380 a share this week, which is more than double what it was five months ago.
The performance of Centene, which reported net income of more than $1 billion in the second quarter, and Humana has been particularly important to the health insurance sector because they have a lot of government-subsidized health insurance products and tend to cover sicker patients.
But the improving cost picture for health insurers isn’t without pain for those who are covered by these plans.
Most of these companies have already exited unprofitable markets or areas of the country where they say they don’t have adequate doctor and hospital networks to provide low cost benefits. When they exit markets, health plan enrollees have to pick a different plan during the fall open enrollment period and could potentially lose access to their physician or hospital.
During Humana’s second quarter earnings call, executives said they once again will have “targeted plan exits” for the 2027 health benefit year. Though other companies have yet to confirm exits, they are expected given the industry struggle with costs.
“Our expected margin expansion in 2027 will benefit from our ongoing clinical excellence and operating efficiency work as well as benefit adjustments and targeted plan exits,” Humana chief financial officer Celeste Mellet said a month ago during the company’s second quarter earnings call. “For 2027, we anticipate these plan exits will impact approximately 600,000 members, though we will work to recapture a significant portion of that volume as we did in 2025.”
But not all health insurers are exiting markets they’ve been in. Oscar Health, for example, which sells individual coverage under the Affordable Care Act, also known as Obamacare, entered new markets this year and has been performing well.
The price of Oscar shares has tripled in the last six months. The price of Oscar stock was nearly $32 a share Monday afternoon in trading on the New York Stock Exchange. Back in March, Oscar’s stock price was hovering around $11 a share.
Oscar swung to a $361 million second quarter profit while eclipsing $1 billion in net income for the first six months of the year as health plan membership rose and medical costs eased.
The U.S. health insurance industry, commonly referred to as the Health Maintenance Organization (HMO), continues to benefit from a diversified membership base, an aging population, digital transformation and strategic mergers and acquisitions (M&A). Growth in Medicare Advantage, particularly Special Needs Plans, and steady commercial and exchange enrollment should support premium flows, partly offsetting expected Medicaid membership declines amid regulatory changes. Meanwhile, insurers are enhancing Medicare offerings and investing in home-based care, telehealth, digital tools, automation and AI to improve care delivery and operating efficiency. Strategic acquisitions should further broaden capabilities, diversify revenues and strengthen integrated healthcare platforms. Industry leaders such as UnitedHealth Group Incorporated (UNH - Free Report) , The Cigna Group (CI - Free Report) , Humana Inc. (HUM - Free Report) , Centene Corporation (CNC - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) are well-positioned to capitalize on these favorable growth dynamics.
About the Industry The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Players in this space primarily assume risks and assign health and medical insurance policy premiums. Industry participants also provide administrative and managed-care services for self-funded insurance. Services are generally offered via a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when medically necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Shaping the Fate of the HMO Industry Diversified Membership Mix Supports Steady Premium Flow: Membership trends across Medicare, Medicaid and other health plans remain broadly supportive for the U.S. health insurance industry, though the mix is shifting. Special Needs Plans is emerging as an increasingly important growth area within Medicare Advantage. However, expected Medicaid membership declines resulting from growing regulatory challenges following the enactment of the One Big Beautiful Bill Act may act as a partial offset. But to add some relief, commercial employer-sponsored and individual exchange plans continue to diversify insurers' membership bases and ensure an uninterrupted flow of premiums, the most important revenue component for any health insurer.
An Aging U.S. Population: Medicare plans are specifically designed to meet the healthcare needs of individuals aged 65 and older. The aging U.S. population is steadily expanding the pool of Medicare-eligible individuals and generating higher premium revenues. As older adults generally require greater access to medical services and ongoing management of chronic conditions, insurers are enhancing Medicare Advantage offerings to provide more comprehensive and coordinated coverage. Efforts include strengthening primary and preventive care, expanding care-management programs and offering supplemental benefits covering dental, vision, hearing, wellness and other everyday healthcare needs. These initiatives can improve care coordination and member experience, thereby paving the way for increased plan enrolment.
Digital Transformation Through Technology Investments: Digital transformation remains underway across the HMO industry as health insurers increasingly invest in technology to improve member engagement, streamline operations and enhance care delivery. Insurers are expanding digital platforms, mobile applications, telehealth capabilities and self-service tools to make healthcare services more accessible and convenient for members. At the same time, greater use of automation, advanced analytics and Artificial Intelligence is helping insurers simplify administrative processes and improve claims management. While these investments may initially increase costs for health insurers, they should gradually enhance operating efficiency and the overall member experience, and generate more sustainable revenue growth over the long term.
Strategic M&A Strengthens Growth Opportunities: M&As continue to offer meaningful growth opportunities for the U.S. health insurance industry as insurers pursue strategic deals to broaden capabilities, strengthen geographic presence and diversify beyond traditional insurance operations. Companies are increasingly targeting assets in care delivery, pharmacy services, specialty benefits, healthcare technology and other complementary businesses that can deepen relationships with members and create additional revenue streams. Such transactions can also help insurers build more integrated healthcare platforms, expand access to services and improve operational efficiency through greater scale and technology sharing.
Zacks Industry Rank Instills Optimism The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. The Zacks Medical-HMOs industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #25, which places it in the top 10% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Before we present a few stocks that you may want to buy or retain in your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500, Sector The Zacks Medical-HMO industry has gained 24% in the past year compared with the Zacks S&P 500 composite’s 21.4% growth. The Zacks Medical sector rallied 15.1% in the same time frame.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry trades at 15.77X compared with the S&P 500’s 20.37X and the sector’s 21.96X.
Over the past five years, the industry has traded as high as 19.64X and as low as 11.58X, with the median being at 16.13X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
5 Stocks to Keep a Close Eye On We present five stocks from the space, either sporting a Zacks Rank #1 (Strong Buy) or #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group benefits from the complementary capabilities of UnitedHealthcare and Optum. UnitedHealthcare benefits from strong local-market relationships, a broad product portfolio and advanced technology. Optum’s capabilities in value-based care, population health and analytics further strengthen the company’s position across the healthcare system. Additionally, continued focus on M&As, coupled with expanding telehealth capabilities, strengthens the nationwide footprint of this Zacks Rank #1 company.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $19.81 per share, which implies 21.2% growth from the year-ago figure. UNH’s earnings beat estimates in each of the last four quarters, the average surprise being 12.05%.
Price & Consensus: UNH
Image Source: Zacks Investment Research
Centene: Based in Missouri, Centene serves as one of the nation’s leading Medicaid and Marketplace insurers and stand-alone PDP providers. Its businesses are further supported by numerous contract wins and steady membership expansion. Its locally focused model allows it to tailor products, provider networks and services to community needs. Investments in data-driven care and expertise in dual-eligible populations further support care coordination, affordability and member outcomes. This Zacks Rank #1 company also pursues strategic growth through acquisitions and provider partnerships. Management projects premium and service revenues within $173-$177 billion for 2026.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, which more than doubled from the year-ago figure. CNC’s earnings outpaced estimates in each of the last four quarters, the average being 151.28%.
Price & Consensus: CNC
Image Source: Zacks Investment Research
Based in Connecticut, Cigna is aided by Evernorth Health Services and Cigna Healthcare businesses. Evernorth benefits from its comprehensive portfolio of specialty pharmacy services, while Cigna Healthcare leverages its broad customer base across both the U.S. Government and U.S. Commercial markets. Its extensive customer relationships and broad provider network support significant scale, while a modular portfolio enables solutions to be tailored to client needs. This Zacks Rank #3 company further enhances its market position and growth prospects through strategic acquisitions and partnerships with leading healthcare organizations,
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.50 per share, indicating 2.2% growth from the prior-year figure. CI’s earnings beat estimates in each of the last four quarters, the average surprise being 2.31%.
Price & Consensus: CI
Image Source: Zacks Investment Research
Humana: Headquartered in Kentucky, Humana benefits from its longstanding Medicare expertise, national reach and integrated care delivery model. The company offers a diverse set of health plans across 50 states and leverages a geographically diverse membership base to broaden its provider networks. The strong execution of these programs has enabled the company to win new contracts. Its model combines insurance with CenterWell’s primary care, pharmacy and home health capabilities, supported by data analytics and value-based care arrangements. Additionally, strategic acquisitions have strengthened business diversification efforts and expanded the geographic reach of this Zacks Rank #3 company.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.11 per share. The consensus mark for 2026 earnings has moved 1.1% north over the past 30 days. HUM’s earnings surpassed estimates in each of the last four quarters, the average surprise being 9.59%.
Price & Consensus: HUM
Image Source: Zacks Investment Research
This California-based health insurer benefits from its focused expertise in government-sponsored healthcare, broad presence across 21 states and established scale serving roughly 4.9 million members as of June 30, 2026. The company develops affordable Medicare and Medicaid plans, enriched with extensive benefits, which have consistently led to contract wins and a steady customer base for the Zacks Rank #3 company. Management expects premium revenue to be approximately $42 billion for 2026. The company continues to strengthen its market position through disciplined acquisitions.
The Zacks Consensus Estimate for Molina Healthcare’s 2026 earnings is pegged at $5.29 per share. The consensus mark for MOH’s 2026 earnings has moved 1.1% north over the past 30 days. MOH’s earnings beat estimates in two of the last four quarters and missed the mark twice.
Price & Consensus: MOH
Image Source: Zacks Investment Research
Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Humana Inc. (NYSE:HUM – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 792,814 shares of the insurance provider’s stock, valued at approximately $314,922,000. Barrow Hanley Mewhinney & Strauss LLC owned approximately 0.66% of Humana at the end of the most recent reporting period.
A number of other hedge funds have also modified their holdings of the company. Montag A & Associates Inc. lifted its stake in shares of Humana by 1,880.0% during the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock valued at $25,000 after buying an additional 94 shares in the last quarter. Johnson Financial Group Inc. purchased a new stake in Humana in the 2nd quarter worth $26,000. Fideuram Asset Management Ireland dac bought a new stake in Humana during the fourth quarter valued at about $27,000. Trust Co. of Vermont bought a new stake in Humana during the second quarter valued at about $28,000. Finally, Reflection Asset Management purchased a new position in shares of Humana in the fourth quarter valued at about $29,000. 92.38% of the stock is currently owned by institutional investors.
Humana Stock Performance NYSE:HUM opened at $379.22 on Monday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. Humana Inc. has a 1 year low of $163.11 and a 1 year high of $428.88. The stock’s 50 day simple moving average is $383.38 and its two-hundred day simple moving average is $282.25. The company has a market cap of $45.54 billion, a price-to-earnings ratio of 35.88, a PEG ratio of 2.17 and a beta of 0.72.
Humana (NYSE:HUM – Get Free Report) last posted its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, beating analysts’ consensus estimates of $7.27 by $0.34. The firm had revenue of $40.89 billion during the quarter, compared to the consensus estimate of $40.58 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%.The company’s quarterly revenue was up 26.2% compared to the same quarter last year. During the same period in the prior year, the company earned $6.27 EPS. As a group, equities analysts anticipate that Humana Inc. will post 9.08 earnings per share for the current fiscal year. Analysts Set New Price Targets HUM has been the subject of a number of recent analyst reports. Wells Fargo & Company raised Humana from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $227.00 to $502.00 in a research note on Monday, July 13th. UBS Group initiated coverage on Humana in a report on Thursday, July 30th. They issued a “buy” rating on the stock. Barclays upped their price target on Humana from $344.00 to $407.00 and gave the stock an “equal weight” rating in a research note on Friday, July 31st. Oppenheimer reaffirmed an “outperform” rating and set a $405.00 price objective on shares of Humana in a report on Thursday, July 30th. Finally, HSBC cut shares of Humana to a “hold” rating in a research report on Thursday, July 30th. Fourteen equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $395.22.
Check Out Our Latest Stock Report on Humana
Humana Company Profile (Free Report)
Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
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Bank of Nova Scotia bought a new stake in Humana Inc. (NYSE:HUM – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 257,575 shares of the insurance provider’s stock, valued at approximately $102,314,000. Bank of Nova Scotia owned 0.21% of Humana as of its most recent SEC filing.
Several other institutional investors also recently made changes to their positions in HUM. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Humana by 4.1% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 250,330 shares of the insurance provider’s stock valued at $66,207,000 after acquiring an additional 9,960 shares during the period. Sustainable Insight Capital Management LLC boosted its position in Humana by 23.7% during the 4th quarter. Sustainable Insight Capital Management LLC now owns 24,757 shares of the insurance provider’s stock worth $6,341,000 after acquiring an additional 4,740 shares during the period. Pzena Investment Management LLC bought a new position in shares of Humana in the second quarter worth $1,749,014,000. Swedbank AB raised its stake in shares of Humana by 6.2% in the 4th quarter. Swedbank AB now owns 111,803 shares of the insurance provider’s stock worth $28,636,000 after buying an additional 6,534 shares in the last quarter. Finally, North Dakota State Investment Board acquired a new stake in Humana in the 4th quarter valued at about $1,517,000. 92.38% of the stock is owned by institutional investors.
Analysts Set New Price Targets HUM has been the topic of a number of recent analyst reports. Weiss Ratings raised Humana from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, August 14th. Raymond James Financial lowered shares of Humana from an “outperform” rating to a “market perform” rating in a research report on Thursday, July 30th. Jefferies Financial Group upgraded shares of Humana from a “buy” rating to a “buy” rating in a report on Wednesday, May 20th. Zacks Research downgraded shares of Humana from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. Finally, Cantor Fitzgerald upped their price objective on shares of Humana from $264.00 to $300.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. Fourteen analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $395.22.
Check Out Our Latest Stock Report on Humana Humana Price Performance NYSE HUM opened at $379.22 on Friday. Humana Inc. has a fifty-two week low of $163.11 and a fifty-two week high of $428.88. The stock’s 50-day moving average is $383.38 and its two-hundred day moving average is $281.59. The firm has a market cap of $45.54 billion, a P/E ratio of 35.88, a price-to-earnings-growth ratio of 2.17 and a beta of 0.72. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74.
Humana (NYSE:HUM – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, beating analysts’ consensus estimates of $7.27 by $0.34. Humana had a return on equity of 11.20% and a net margin of 0.88%.The business had revenue of $40.89 billion for the quarter, compared to analyst estimates of $40.58 billion. During the same quarter in the prior year, the firm posted $6.27 EPS. The firm’s revenue for the quarter was up 26.2% on a year-over-year basis. On average, analysts anticipate that Humana Inc. will post 9.08 earnings per share for the current fiscal year.
About Humana (Free Report)
Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
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Key Takeaways Humana is targeting a return to top-quartile Star Ratings performance by bonus year 2028.Improvement in 11 of 12 selected measures is outpacing historical trends, signaling quality gains.A rebound could lift MA economics and complement plan selection and operating-efficiency efforts. Humana Inc.’s (HUM - Free Report) Star Ratings recovery is emerging as a key catalyst for its Medicare Advantage (MA) turnaround. After facing a significant Stars-related headwind, the company is targeting a return to top-quartile performance by bonus year 2028. This recovery is important to the broader goal of achieving a sustainable pretax margin of at least 3% by 2028.
Early execution signals are encouraging. The rate of improvement across 11 of 12 selected HEDIS and patient-safety measures outpaced historical trends. This suggests that investments in clinical quality and member engagement are gaining traction. Still, we should view this as positive momentum rather than a completed turnaround.
The potential financial benefit is meaningful. The company defines top-quartile performance as Stars revenue per member per month 10% above the peer median. A successful recovery could improve the economics of its MA plans and complement other margin initiatives, including better plan selection and operating efficiencies.
The October Centers for Medicare & Medicaid Services (“CMS”) Stars release will be the key near-term test. A meaningful rebound would validate its quality improvement efforts and provide greater confidence in its earnings trajectory. More importantly, it could strengthen the case that Humana is on a credible path toward its 2028 margin target, giving investors a stronger reason to remain optimistic about the turnaround.
How Are Peers Positioned?Peers like UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) are also focused on strengthening Medicare Advantage quality and profitability.
UnitedHealth Group maintains a strong quality profile, with roughly 75-78% of members in 4+ Star plans. This sustained performance secures Quality Bonus Payments and preserves rebate dollars, giving UNH greater flexibility to fund competitive supplemental benefits while protecting underwriting margins.
Elevance Health operates with a broader commercial and Medicaid presence while working to strengthen its Medicare Advantage Stars profile through focused clinical outcomes and member engagement. Improving these quality scores could support ELV with better MA economics over time.
HUM’s Price Performance, Valuation and EstimatesShares of HUM have gained 47.6% year to date, outperforming the broader industry’s 20.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, HUM trades at a forward price-to-earnings ratio of 29.24X, up from the industry average of 15.98X. Humana carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HUM’s 2026 earnings implies a 47% deterioration year over year, followed by a 66.7% improvement next year.
Image Source: Zacks Investment Research
HUM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today announced that Shantanu Nundy, M.D., will join the company as Chief Medical Officer, effective August 31. A practicing physician, healthcare executive, and technology leader, Dr. Nundy has spent his career using technology to make care better, simpler, and more human. At Humana, he will bring an innovative clinical voice to the enterprise and help shape the design of the company's products, platforms, and use of AI. Dr. Nundy will report to Jim Rechtin, Humana President and CEO, and will serve as a member of the company’s Enterprise Leadership Team.
“Clinical excellence is at the heart of Humana’s vision to be a leading consumer healthcare company, and I am thrilled to welcome Dr. Nundy as our new chief medical officer,” said Jim Rechtin, Humana President and CEO. “I am confident Shantanu’s experience at the intersection of clinical outcomes, technology, and the consumer experience will advance our efforts to simplify the path to care and help the people we serve achieve their best health.”
Dr. Nundy most recently served as Executive Vice President of Care Delivery and Chief Health Officer at Accolade, a personalized healthcare navigation and care delivery company serving millions of Americans, where he led a technology-driven transformation of the member care experience. Previously, he was Managing Director for Clinical Innovation at Evolent Health, where he drove value-based and digital care transformation across large health systems. He has advised a wide range of organizations on digital health and AI, including the U.S. Food and Drug Administration, World Bank, and a number of health technology startups. Dr. Nundy is a hands-on clinician who practices primary care at a community health center and hospital medicine at a regional health system. He is the author of two books and serves on the adjunct faculty at Stanford Medicine and Johns Hopkins Carey Business School. He earned his bachelor's degree from the Massachusetts Institute of Technology, his medical degree from Johns Hopkins and his MBA from the University of Chicago.
About Humana
Humana is a leading U.S. healthcare company. Through our Humana insurance services, and our CenterWell healthcare services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.
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Joel Greenblatt’s Gotham Asset Management disclosed a defensive tilt in its Q2 2026 13F, filed in mid-August, headlined by a $2.65 billion add to the SPDR S&P 500 ETF and outsized conviction buys in managed care, packaged foods, and Manhattan office real estate. For a quant shop built on the “magic formula” framework, the shift toward index beta and staples is the tell. Greenblatt appears to be dialing down single-name risk and buying umbrellas.
The centerpiece move: SPDR S&P 500 ETF Trust (NYSEARCA:SPY) now anchors roughly 20% of the 1,791-position book. That is a striking allocation for a firm known for concentrated value screens. With SPY trading at $768.51 and up 13.31% year to date, the add functions as a hedge against factor drift while the fund reshuffles hundreds of smaller positions. Pair that with a new ~$157 million short-duration Treasury bill position, and the message is clear: dry powder and market beta over stock-picking alpha.
The Conviction Buys Behind the Shift The most aggressive individual add was Humana (NYSE:HUM | HUM Price Prediction), where Gotham grew its share count roughly 65-fold. The thesis is visible in the numbers. Humana posted Q2 revenue growth of 26.2% year over year, individual Medicare Advantage membership climbed meaningfully year over year, and CEO Jim Rechtin reiterated the path to a “sustainable pre-tax margin of at least 3% in 2028.” The stock is up 51.18% year to date, and analysts carry a $416.43 target. Healthcare spending grew from $3,537.7B in June 2025 to $3,741.0B in June 2026, a textbook defensive tailwind.
General Mills (NYSE:GIS) saw a 4.4x share increase. This is a contrarian value bet: the stock is down 14.37% year to date, trades at a forward P/E of 13, and yields 6.22%. With consumer sentiment at recessionary levels of 49.5, staples exposure at trough multiples fits the playbook.
Vornado Realty Trust (NYSE:VNO) got a 3.2x add, a bet on the Manhattan office recovery. Vornado’s NY office occupancy climbed to 92.2%, and Chairman Steven Roth noted “Office leasing volume in Manhattan is at its highest level in 25 years.”
The outlier is KLA Corporation (NASDAQ:KLAC), up 8.5x. Semiconductor capital equipment is cyclical, so this looks less defensive and more like a valuation call on an AI infrastructure winner posting 42.5% operating margins and 87.5% return on equity.
Should Retail Follow? The defensive skeleton makes sense. Sentiment is depressed, the VIX sits at 14.25 (complacency territory), and PCE growth is decelerating. Humana offers a clear operational turnaround with a hard 2028 margin target. General Mills offers yield and a trough valuation. Vornado offers real occupancy improvement at a 23% NAV discount. The SPY position is a hedge, not a thesis.
For a retirement-focused investor, the framework is instructive: pairing a market beta anchor with defensive cash flow names, holding dry powder in T-bills, and treating concentrated cyclicals like KLAC as satellite positions. Among the four conviction adds, HUM stands out where the setup, valuation, and demographic tailwind align most cleanly.
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In September, roughly 600,000 Humana Medicare Advantage members will open a letter telling them their plan will not exist in 2027. Humana (NYSE: HUM | HUM Price Prediction) confirmed the exits on its July 29, 2026 earnings call, and CFO Celeste Mellet was blunt about the scope: “For 2027, we anticipate these plan exits will impact approximately 600,000 members, though we will work to recapture a significant portion of that volume as we did in 2025.”
That is about 8% of Humana’s 7.2 million MA members. If you are one of them, treat the letter as a deadline. Your current plan ends December 31, 2026, and one of your most valuable options now has an expiration date.
Why the Letter Matters More Than It Looks The termination notice does two things at once. It ends your coverage, and it unlocks a set of rights you would not ordinarily have. The most important is a guaranteed-issue Medigap window that lasts 63 days after your MA coverage ends. Inside that window, an insurer must sell you certain Medigap policies, disregard your health history when setting the price, and cover pre-existing conditions. Outside it, in most states, the insurer can medically underwrite you, raise your premium, or deny you outright.
This is one mechanic that could shape the next decade of your out-of-pocket costs. Original Medicare has no out-of-pocket maximum on its own. A Medigap Plan G covers most remaining costs for Medicare-approved services after the Part B premium, annual Part B deductible, and Plan G monthly premium. Miss the window, develop a condition, and you could find it difficult or impossible to buy a supplement later.
The Three Dates That Control Your 2027 Humana’s letters key off the CMS Annual Notice of Change deadline, which requires plans to notify members by September 30. Once you have that letter, three windows overlap:
Annual Enrollment Period: October 15 to December 7, 2026. Pick a new Medicare Advantage plan or a stand-alone Part D drug plan for 2027 coverage that starts January 1. Special Enrollment Period for plan nonrenewal: Because Humana is terminating the plan, you get an SEP that runs from December 8 through February 28, 2027, to join another MA or Part D plan. Use it if you miss AEP. Medigap guaranteed-issue window: 63 days after coverage ends. If you want to move to Original Medicare plus a supplement, this is the window. You may apply starting 60 days before your MA coverage ends to avoid a gap. The Medigap window is the one people miss. It keys off your disenrollment date, not the AEP calendar.
Advantage Again, or Back to Original? Humana says it expects to recapture roughly 40% of affected members through other offerings, based on its 2025 exit that shed roughly 500,000 members. Translation: most of you will shop, and many will choose a different insurer. Before you sign up for the next zero-premium plan on the comparison screen, price the alternative.
A healthy 68-year-old on Original Medicare plus a Plan G pays the Part B premium, the Plan G premium, commonly $150 to $250 per month depending on state and age, and the annual Part B deductible. In a sick year, that is most of the cost for Medicare-approved care. The same person on a $0-premium MA plan still pays Part B, then faces copays and coinsurance until reaching the in-network out-of-pocket maximum, which excludes drugs and may not protect against all out-of-network costs.
The 63-day guaranteed-issue window is your one clean shot to make that switch without underwriting. If your health is deteriorating or you travel and want provider flexibility, this is the moment to consider moving. If you are healthy, use low-cost care, and your doctors are in another MA network, staying in Advantage is defensible. Just know that switching back later will likely require medical underwriting.
What to Do When the Letter Arrives If you’re among those impacted, do these three things before enrolling anywhere else:
Confirm your disenrollment date and write it on the calendar. Count 63 days forward. That is your Medigap deadline. Get Medigap quotes before choosing a new MA plan. If a Plan G premium at your age fits your budget, apply during the guaranteed-issue window. You can still enroll in a stand-alone Part D drug plan during AEP. Call your state’s SHIP counselor for free before October 15. A few states, including New York, Connecticut, Massachusetts, and Maine, offer broader continuous or annual Medigap protections. If you live there, the math changes. Contact [email protected] for any questions or corrections.
ABN Amro Investment Solutions raised its position in Humana Inc. (NYSE:HUM – Free Report) by 35.6% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,370 shares of the insurance provider’s stock after purchasing an additional 1,934 shares during the quarter. ABN Amro Investment Solutions’ holdings in Humana were worth $2,928,000 at the end of the most recent quarter.
Several other hedge funds also recently bought and sold shares of HUM. Retireful LLC bought a new position in Humana during the second quarter valued at about $1,250,000. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Humana by 14.5% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 29,374 shares of the insurance provider’s stock valued at $11,668,000 after acquiring an additional 3,726 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in Humana by 1.9% in the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 16,419 shares of the insurance provider’s stock worth $6,522,000 after purchasing an additional 301 shares during the last quarter. Ifrah Financial Services Inc. bought a new position in shares of Humana in the second quarter valued at approximately $293,000. Finally, Greenleaf Trust lifted its stake in shares of Humana by 25.5% in the second quarter. Greenleaf Trust now owns 2,483 shares of the insurance provider’s stock worth $986,000 after buying an additional 505 shares during the last quarter. 92.38% of the stock is owned by institutional investors and hedge funds.
Humana News Summary Here are the key news stories impacting Humana this week:
Positive Sentiment: Higher earnings outlook: Zacks Research raised its Q1 2027 EPS estimate to $9.04 from $8.70, suggesting improved expectations for Humana’s near-term profitability. The firm nonetheless maintained a Hold rating. Humana earnings estimate article Positive Sentiment: Medicaid and underserved-member expansion: Humana is partnering with Cityblock Health to support low-income and dual-eligible Medicare Advantage members. The move could strengthen care coordination and support growth in Medicaid and Medicare-related services. Humana Cityblock partnership article Positive Sentiment: Caregiver-retention initiative: A HealthStream agreement will fund 1,000 caregiver scholarships and provide recruitment and retention tools in Indiana, potentially supporting staffing at Humana’s CenterWell operations. Humana HealthStream deal article Positive Sentiment: Brokerage price-target support: JPMorgan raised its price target for HUM to $393, indicating modest upside relative to the referenced trading level. JPMorgan Humana price target article Neutral Sentiment: Leadership change: Humana appointed James Holland as president of its Medicaid business, underscoring the company’s focus on Medicaid but creating an execution milestone for investors. Humana Medicaid leadership article Neutral Sentiment: Legal proceeding: Humana agreed not to reference Teva’s Israeli identity during an upcoming U.S. drug-price-fixing trial. The agreement is procedural and does not indicate a new financial liability for Humana. Humana Teva trial article Negative Sentiment: Medicare Advantage membership reduction: Humana reportedly plans to drop approximately 600,000 Medicare Advantage members in 2027. Although the move may improve plan economics, investors may view the lost membership and related revenue as a near-term headwind. Humana Medicare Advantage membership article Negative Sentiment: More cautious rating: Zacks Research downgraded Humana from Strong Buy to Hold, limiting the positive impact from the firm’s higher EPS forecast. Zacks Humana rating Analyst Upgrades and Downgrades A number of brokerages have recently commented on HUM. Bank of America upgraded Humana from a “neutral” rating to a “buy” rating and set a $500.00 price target for the company in a report on Wednesday, July 29th. Jefferies Financial Group upgraded shares of Humana from a “buy” rating to a “buy” rating in a research note on Wednesday, May 20th. Wolfe Research raised shares of Humana from a “peer perform” rating to an “outperform” rating in a report on Thursday, July 30th. Wells Fargo & Company upgraded shares of Humana from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $227.00 to $502.00 in a research report on Monday, July 13th. Finally, Raymond James Financial downgraded shares of Humana from an “outperform” rating to a “market perform” rating in a report on Thursday, July 30th. Fourteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $395.22.
Get Our Latest Report on HUM
Humana Stock Down 1.1% Shares of HUM opened at $384.50 on Friday. The business’s 50 day simple moving average is $381.25 and its 200-day simple moving average is $274.88. Humana Inc. has a one year low of $163.11 and a one year high of $428.88. The company has a market capitalization of $46.17 billion, a P/E ratio of 36.38, a PEG ratio of 2.22 and a beta of 0.72. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74.
Humana (NYSE:HUM – Get Free Report) last released its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, beating the consensus estimate of $7.27 by $0.34. The company had revenue of $40.89 billion during the quarter, compared to analysts’ expectations of $40.58 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%.The business’s revenue for the quarter was up 26.2% on a year-over-year basis. During the same period last year, the firm earned $6.27 EPS. As a group, sell-side analysts predict that Humana Inc. will post 9.09 EPS for the current fiscal year.
Humana Company Profile (Free Report)
Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
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Key Takeaways Humana is sponsoring 1,000 Home Health Aide scholarships to strengthen Indiana's home-care workforce.HealthStream tools aim to help providers recruit and retain caregivers in rural and underserved areas.Trained aides are more than twice as likely to remain employed after three months. Humana Inc.’s (HUM - Free Report) Medicaid managed care plan, Humana Healthy Horizons, is teaming up with HealthStream in Indiana to strengthen the state’s home-care workforce. Under the initiative, Humana is sponsoring 1,000 Home Health Aide scholarships, helping remove financial barriers for people entering the caregiving field.
The program uses HealthStream’s Career Network to reach rural and underserved communities, where worker shortages can restrict access to home-based care. Humana is also deploying HealthStream’s CoachUp Care platform, predictive analytics and training tools to help providers recruit and retain caregivers. The initiative builds on a workforce-stability program launched in 2024.
The collaboration targets a persistent challenge in home healthcare: high caregiver turnover. Home-care providers have an average annual turnover rate of 77%, which can disrupt continuity of care. Training appears to make a meaningful difference. HUM says that trained home-care aides are more than twice as likely to remain employed after three months and 64% more likely to stay after six months than workers without comparable training. Early results are also encouraging, with 81% of participating providers achieving above-average caregiver retention. Providers that improved retention reported an average 43% increase.
Better caregiver retention can improve continuity of care and help expand access to home-based services. That could support Humana’s ability to manage care more effectively over time. While the scholarships and technology require upfront spending, stronger workforce stability could help reduce disruptions and improve operational efficiency for participating providers. Overall, this is a long-term care-quality and network-strengthening initiative.
How Are Peers Positioned?Peers like UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) are also trying to solve the direct-care/home-care workforce problem. UnitedHealthcare's Community Plan includes training for members, families and professional/paraprofessional caregivers, along with employer training for consumer-directed services and skills updates needed to safely maintain members at home. UNH’s approach appears more centered on training and supporting the existing caregiver ecosystem.
Elevance has emphasized employee development, training and retention internally, including instructor-led and virtual training, on-demand learning and technology/AI-related skills development. Last year, ELV averaged about 26 hours of training and development per associate.
Humana’s Price Performance, Valuation and EstimatesHUM shares have gained 51.8% over the year-to-date period, whereas the industry has risen 23%.
Image Source: Zacks Investment Research
From a valuation standpoint, Humana trades at a forward price-to-earnings ratio of 30.34, up from the industry average of 16.40. Yet, HUM carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.08 per share, implying a 47% plunge from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The logo of Teva Pharmaceutical Industries is displayed at the company headquarters in Tel Aviv, Israel, February 20, 2024. REUTERS/Dylan Martinez/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesTrial next month in Philadelphia covers claims generic drug prices were inflatedTeva says Gaza war views could unfairly influence US jurorsHumana can still use Teva documents even if Israeli ties are mentionedWASHINGTON, Aug 13 (Reuters) - Health insurer Humana (HUM.N), opens new tab has agreed not to refer to drugmaker Teva (TEVA.TA), opens new tab as an Israeli company at an upcoming U.S. drug price-fixing trial, after the drugmaker said public views on the Gaza war could unfairly influence jurors.
Humana disclosed its agreement with Teva in a Wednesday night filing in the federal court in Philadelphia, where Teva and several other major pharmaceutical companies are due to stand trial next month on claims they conspired to inflate the prices of some generic drugs.
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The agreement underscores how divisive the issue has become in the United States following Israel's military assault on the Gaza Strip, triggered by Hamas' October 2023 attack on Israel.
Humana and Teva did not immediately respond to requests for comment.
In a filing earlier this month, Tel Aviv-based Teva asked the judge overseeing the case to bar references at trial to Teva's national origin, arguing it is irrelevant to the antitrust legal proceeding in the United States and could prejudice jurors against Teva.
“In the period of almost three years since the start of the Gaza War, anything connected with Israel has been subject to the highest levels of controversy, with emotions running high,” Teva said.
Humana in its filing on Wednesday said that its lawyers during the trial "will not make references in argument or questioning relating to the fact that Teva is an Israeli company."
The agreement does not restrict Humana from introducing documents at the trial just because "the fact that Teva is an Israeli company can be adduced from the document.”
Teva has denied Humana's allegations that it conspired with other drugmakers to keep the prices of some drugs artificially high. The drugs include the muscle relaxant baclofen and blood pressure medication propranolol. The claims in the lawsuit are directed at Teva's U.S.-based subsidiary.
The price-fixing trial is scheduled to begin on September 15 and end in late October.
Reporting by Mike Scarcella; Editing by David Bario and David Gaffen
Our Standards: The Thomson Reuters Trust Principles., opens new tab
On June 30, 2026, Richard Pzena (Trades, Portfolio)'s firm executed a significant addition to its existing position in LKQ Corp (LKQ, Financial), purchasing 9,1
Humana Inc. (NYSE: HUM) today announced that James âJ.P.â Holland will join the company as senior vice president and President of Medicaid, effective August
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today announced that James “J.P.” Holland will join the company as senior vice president and President of Medicaid, effective August 17. In this role, Holland will lead the company's growing Medicaid business, which currently serves more than 1.6 million members in 11 states. Holland will report to Aaron Martin, President of Insurance. “Medicaid is an important part of how we deliver on Humana's purpose, helping some of the most vulnerab.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying HUM stock? Here’s what analysts think:
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LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today announced Humana Community Day 2026, its annual nationwide day of service taking place Wednesday, Aug. 26, 2026, mobilizing thousands of employees to volunteer in communities across the United States. Humana Community Day is a company-wide volunteer initiative focused on improving community health by addressing local needs such as food insecurity, neighborhood revitalization and social connection. In 2026, enterprise-driven activit.
A 72-year-old in Tampa opens her 2027 Annual Notice of Change and finds the same $0 premium she has paid for four years. Buried deeper in the document, the $75 monthly grocery card drops to $35, the dental allowance shrinks from $2,500 to $1,500, and SilverSneakers gives way to a home-fitness app. Her premium did not move. Her coverage did.
That hypothetical captures the pattern investors and industry analysts began warning about in May. Medicare Advantage insurers are expected to pare supplemental benefits in 2027 as medical costs remain elevated and plan margins stay under pressure. The $0 premium survives on the marketing page. Dental, hearing, fitness, meals, transportation, and over-the-counter benefits become the release valve.
The 2027 Annual Notice of Change arriving this fall will show where each plan made the trade.
Why the Perks Are the Release Valve CMS finalized an average 2.48% increase in Medicare Advantage payments for 2027, with additional growth expected through risk-score changes. Insurance executives still warned that the funding may not cover rising medical utilization and their profit targets. Humana (NYSE: HUM), Medicare Advantage giant, has already said benefit adjustments will be necessary.
A $0 plan premium remains one of Medicare Advantage’s strongest selling points, although every enrollee must generally continue paying the Part B premium. Cutting an extra benefit is less visible than introducing a new monthly charge. The change may not register until a dental claim is denied or the grocery card reloads at a smaller amount.
Supplemental benefits are not decorative for everyone. Commonwealth Fund research found that 89% of Medicare Advantage members considered them important, while 46% used an OTC benefit and 42% used dental coverage. Lower-income members were especially likely to value them.
The Real Dollars Coming Out of Your Benefit Take a middle-tier Advantage plan with the four benefits doing the heaviest lifting on the sales sheet:
Benefit Typical 2026 Value Analyst-Expected 2027 Value Annual Loss Grocery/OTC card $75/month $35/month $480 Dental allowance $2,500/year $1,500/year $1,000 Gym membership Full SilverSneakers Digital-only app ~$400 gym-equivalent Hearing aid allowance $1,500/pair $1,000/pair $500 in replacement year Add it up, and the plan could be worth roughly $1,880 less in a typical year and $2,380 less in a hearing-aid replacement year. That is real money against a fixed income. The 2026 Social Security cost-of-living adjustment (COLA) was 2.8%, and the personal savings rate fell to 3.9% in Q1 2026 from 6.2% two years earlier. Seniors do not have the cushion they had in 2024.
The Comparison That Matters Medicare Advantage can still win the healthy-year calculation. A $0-premium plan with useful supplemental benefits may cost considerably less than Original Medicare paired with Medigap and standalone Part D coverage.
The sick-year calculation looks different. Medicare Advantage plans use provider networks, prior authorization, copayments, and an annual out-of-pocket limit for covered Part A and Part B services. The 2026 federal in-network ceiling is $9,250, although many plans set a lower limit. Part D spending and supplemental services such as dental do not count toward that medical ceiling.
Original Medicare paired with Plan G generally leaves the enrollee responsible for the $283 Part B deductible in 2026 for Medicare-covered Part A and Part B services. Plan G also covers the Part A hospital deductible. The tradeoff is a separate Medigap premium, standalone drug coverage, and little or no routine dental, hearing, or vision coverage.
Moving back is not always simple. Outside the initial Medigap enrollment period or another guaranteed-issue event, insurers in many states can use medical underwriting. The Annual Enrollment Period allows someone to leave Medicare Advantage, but it does not guarantee acceptance into Medigap.
What to Do Before December 7 Three checks carry most of the weight:
Compare every supplemental benefit in the 2026 and 2027 ANOCs. Count only benefits you used or realistically expect to use, and note any eligibility restrictions, provider networks, and annual caps. If considering Original Medicare, apply for Medigap and obtain written acceptance before dropping Medicare Advantage. Check state-specific protections through the insurance department or SHIP. Run the current plan and at least two competitors through Medicare Plan Finder. Confirm prescriptions, pharmacies, doctors, hospitals, and the medical out-of-pocket maximum. Dental cards do not compensate for losing the cardiologist. The premium is the number designed to catch the eye. The ANOC shows what the plan will actually be worth next year.
Contact [email protected] for any questions or corrections.
Avidity Partners Management LP purchased a new position in shares of Humana Inc. (NYSE:HUM – Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 25,000 shares of the insurance provider’s stock, valued at approximately $4,335,000. Humana accounts for 0.9% of Avidity Partners Management LP’s holdings, making the stock its 16th largest position.
Other institutional investors have also modified their holdings of the company. Montag A & Associates Inc. lifted its holdings in Humana by 1,880.0% during the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock worth $25,000 after buying an additional 94 shares in the last quarter. CoreCap Advisors LLC grew its stake in shares of Humana by 54.4% in the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider’s stock worth $27,000 after acquiring an additional 37 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new position in shares of Humana in the fourth quarter worth $27,000. Reflection Asset Management purchased a new stake in shares of Humana during the fourth quarter worth $29,000. Finally, Global Assets Advisory LLC acquired a new stake in shares of Humana in the first quarter valued at $38,000. 92.38% of the stock is owned by institutional investors and hedge funds.
Humana Stock Performance NYSE HUM opened at $364.54 on Friday. The company has a quick ratio of 1.77, a current ratio of 1.74 and a debt-to-equity ratio of 0.62. Humana Inc. has a 52-week low of $163.11 and a 52-week high of $428.88. The business’s 50-day moving average price is $370.79 and its 200 day moving average price is $268.37. The firm has a market cap of $43.77 billion, a P/E ratio of 34.49, a P/E/G ratio of 2.07 and a beta of 0.71.
Humana (NYSE:HUM – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, beating the consensus estimate of $7.27 by $0.34. Humana had a return on equity of 11.20% and a net margin of 0.88%.The firm had revenue of $40.89 billion during the quarter, compared to the consensus estimate of $40.58 billion. During the same period in the prior year, the business earned $6.27 EPS. The firm’s revenue was up 26.2% compared to the same quarter last year. On average, equities research analysts expect that Humana Inc. will post 9.1 earnings per share for the current year.
Key Headlines Impacting Humana Here are the key news stories impacting Humana this week:
Positive Sentiment: Analyst upgrades: Leerink Partners raised Humana from “market perform” to “outperform” and set a $513 price target, implying substantial upside. Bank of America also upgraded the stock to “Buy.” Leerink Partners upgrade Bank of America upgrade Positive Sentiment: Second-quarter beat: Humana reported adjusted EPS of $7.61, above the $7.27 consensus estimate, while revenue reached $40.89 billion versus expectations of $40.58 billion. Revenue increased 26.2% year over year, and reported profit was approximately $694 million. Humana second-quarter profit report Neutral Sentiment: TD Cowen raised its target from $350 to $370 but maintained a “Hold” rating, indicating only modest expected upside and signaling limited conviction despite the higher valuation estimate. TD Cowen price target update Negative Sentiment: Unchanged guidance disappointed investors: Humana affirmed its full-year 2026 adjusted earnings outlook rather than raising it after the quarterly beat. Reports also cited pressure from lower Medicare Advantage quality ratings, tempering optimism about near-term earnings growth. Humana stock and second-quarter outlook Negative Sentiment: Medicare Advantage exits: Humana plans to withdraw from additional Medicare Advantage markets and plans in 2027 as it targets a 3% margin. The portfolio reshaping may improve profitability over time, but it could reduce membership and revenue growth in the near term. Humana Medicare Advantage plan exits Wall Street Analysts Forecast Growth A number of research analysts recently issued reports on HUM shares. Sanford C. Bernstein reiterated an “outperform” rating and issued a $425.00 target price on shares of Humana in a report on Wednesday, June 3rd. Guggenheim increased their price target on Humana from $269.00 to $471.00 and gave the company a “buy” rating in a research report on Thursday. Wolfe Research upgraded Humana from a “peer perform” rating to an “outperform” rating in a research note on Thursday. Barclays boosted their price objective on Humana from $344.00 to $407.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, Jefferies Financial Group raised shares of Humana from a “buy” rating to a “buy” rating in a report on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $386.61.
Check Out Our Latest Research Report on HUM
Humana Company Profile (Free Report)
Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
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Sometime between now and September 30, Medicare Advantage members across the country will pull an envelope out of the mailbox and learn what their coverage may look like in 2027. Most will receive an Annual Notice of Change. Members whose plan is leaving Medicare or exiting their county may receive a separate nonrenewal notice.. Others will trim benefits, tighten networks, or move drugs into higher tiers. The document is called the Annual Notice of Change, and the largest insurers have already told Wall Street what pressures will shape those letters.
On its July 16, 2026 earnings call, UnitedHealth Group (NYSE: UNH) said it expects full-year Medicare Advantage enrollment to shrink by approximately 1.1 million. UnitedHealthcare CEO Tim Noel told analysts the company will support margins through “benefit adjustments and selective changes in market participation” in its 2027 bids. That is the corporate way of saying some combination of leaner benefits and fewer markets.
Pharmacy retailer CVS Health (NYSE: CVS) offers another clue, though not a direct roadmap for Aetna’s 2027 Medicare plans. The company exited the individual ACA exchange business in 2026, reported lower medical membership, and is closing 16 Oak Street Health clinics. Humana (NYSE: HUM) is moving the other way, guiding to roughly 25% year-over-year growth in individual MA membership for 2026.
As of July 27, UnitedHealth shares were up about 26.5% year to date, Humana had gained roughly 48%, and CVS was ahead about 35%. Wall Street has rewarded retrenchment and growth alike, as long as the margins improve. Members are the ones who have to live with the fine print.
None of that matters to you until the letter arrives.
What the Fall Letter Actually Triggers If your plan is continuing, it must deliver the Annual Notice of Change by September 30. Read the summary of changes first. If the plan is being discontinued, watch for a separate nonrenewal notice. Depending on what you receive, two enrollment windows may matter.
The first is the Annual Enrollment Period, October 15 through December 7. Anyone can switch MA plans, leave MA for Original Medicare, or change drug coverage during this window, with new coverage effective January 1, 2027.
The second applies when a plan does not renew. CMS grants affected members a Special Enrollment Period running from December 8 through the end of February. That window lets you choose another MA plan or drug plan after the ordinary enrollment deadline.
Separately, returning to Original Medicare because the plan is leaving Medicare or your area can open a federal guaranteed-issue right to Medigap. That application window can begin when the termination notice arrives and ends 63 days after the MA coverage ends. That distinction is the one most people miss.
The Medigap Trap Hiding in the Switch Back Federal guaranteed-issue rights after an MA non-renewal are narrow. They generally cover Medigap Plans A, B, C, D, F, and G. Plans C and F are unavailable to people newly eligible for Medicare on or after January 1, 2020, who may buy Plan D or G instead. Plan N is not included under the federal rule unless state law provides wider protection.
Miss the window, and outside states with broader rights, including New York, Connecticut, Massachusetts, and Maine, an insurer may medically underwrite you, charge more, or deny coverage based on your health. A 72-year-old with diabetes and a stent who assumes she can “just go back to Original Medicare next year” could find the supplement door closed.
Original Medicare will carry its own costs in 2027. The Medicare Trustees project a standard Part B premium of $209.50 per month, up from $202.90 in 2026, and a $292 annual deductible, up from $283. Those are estimates; CMS will finalize the amounts this fall. The 2027 IRMAA calculation will use 2025 income, but the official thresholds and surcharges have not yet been released.
Using a Plan G premium of $150 to $250, Original Medicare plus Medigap could run roughly $360 to $460 a month before standalone drug coverage, and more for someone paying IRMAA. That math can push people toward another MA plan even when they dislike the network they are leaving.
What to Do When the Letter Lands Three checks deserve your attention before the envelope disappears into a kitchen drawer.
Read the ANOC and compare four items: whether the plan will still operate in your county, the premium and maximum out-of-pocket amount, the benefits you actually use, and your prescription tiers. Confirm doctors and hospitals separately with their billing offices because directories can lag. If the plan is non-renewing and you have a chronic condition, price Medigap while the guaranteed-issue right is open. Apply before the MA coverage ends if possible, and no later than 63 days afterward. Keep the termination notice as proof of eligibility. Run your current MA-PD plan or standalone Part D plan through Medicare.gov’s Plan Finder. Enter every prescription and pharmacy. Formularies move even when premiums do not, and auto-renewal is where most drug-cost surprises begin. The insurers have already made their 2027 decisions. Yours starts when the letter arrives.
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LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today announced that the Company's Board of Directors has elected Paul Smith and Frederick Crawford as new Board members, effective immediately. Smith is the Chief Commercial Officer at Anthropic, PBC where he leads commercial strategy and global go-to-market operations as the company scales to meet growing enterprise demand worldwide. He brings over 30 years of experience leading global go-to-market organizations through major technolog.
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Humana Inc. (NYSE: HUM) breached their fiduciary duties to shareholders.
If you currently own Humana stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
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UnitedHealth Just Gave Wall Street a Clearer Turnaround SignalHumana NYSE: HUM said its 2026 performance is tracking in line with expectations, with management emphasizing planned Medicare Advantage margin expansion in 2027, progress in its Stars program and continued operating-cost reductions as key components of its path toward a sustainable pretax margin of at least 3% in 2028.
President and Chief Executive Officer Jim Rechtin said the company’s 2026 membership growth trajectory remains on track and that both new and returning members are performing as expected. He said Humana’s priority in preparing its 2027 Medicare Advantage, or MA, bids was to make the margin progress needed to remain on course for its 2028 target.
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3 Stocks Doing the Heavy Lifting in Healthcare’s Rebound“We expect our targeted margin expansion in 2027 to be driven by our ongoing focus on clinical excellence and operating efficiency work, combined with adjustments to our plan mix and benefits,” Rechtin said.
2027 Medicare Advantage Plan Changes Chief Financial Officer Celeste Mellet said Humana expects to make “significant progress” in 2027 compared with 2026, although final results will depend on the size and composition of its membership. The company did not provide a specific margin target for 2027.
3 Healthcare Stocks Set to Benefit From the One Big Beautiful BillHumana expects targeted plan exits for 2027 to affect approximately 600,000 members. Mellet said the company intends to recapture a significant portion of those members, similar to its experience in 2025, when it recaptured just over 40% of affected membership.
The company said it will use plan exits to preserve higher-performing plans, particularly those with greater penetration of value-based care. Mellet described the strategy as removing the lower end of profitability and returns rather than making more uniform benefit reductions across the portfolio. She said most planned exits involve plans with ratings of 3.5 Stars or below for bonus year 2027, though she said the strategy was not principally a Stars-related decision.
Humana said its bids continue to assume cost trends consistent with its 2026 outlook. Mellet reiterated that the company expects all-in medical and pharmacy cost trend of 7% to 8% this year, including lower medical-cost trend and double-digit drug-cost trend. For 2027, she said drug trend is expected to increase modestly due to the health technology pipeline and newly released drugs.
Management also said it incorporates contingency into its bids because they are submitted well ahead of the coverage year.
Cost Trends and Operating Efficiency Mellet said medical costs have been within Humana’s expected range, with slight favorability concentrated in inpatient care. Based on roughly four months of completed claims data, she said the favorable inpatient trend was more concentrated among members served by value-based providers.
The company said it has seen both lower hospital admissions per thousand members and lower unit costs for admissions. Rechtin said Humana is pursuing site-of-service initiatives intended to steer members toward lower-cost and higher-quality settings through local contracting, provider incentives, benefit design and member education.
Humana’s consolidated operating-cost ratio declined 120 basis points year over year in the second quarter, according to Mellet. The company continues to expect an approximately 150-basis-point reduction for the full year. Management said operating-model efforts have generated hundreds of millions of dollars in value during the first half of 2026.
Among the actions cited by Rechtin were centralizing utilization-management operations from 11 markets into one team, expanding outsourcing in finance and human resources, optimizing information-technology vendor relationships and integrating CarePlus operations into Humana’s core platforms.
Mellet said earlier cost efforts were more tactical, while current work is increasingly transformational, including simplification of operations, organizational structures, data management and vendor relationships. She said Humana is not yet reflecting major benefits from technology initiatives but sees a longer-term opportunity.
Stars Progress and December Update Rechtin said Humana’s outlook for bonus year 2028 Stars results remains unchanged and that the company remains confident in its ability to return to top-quartile results. Humana defines that objective as Stars revenue per member per month that is 10% above the median of its peer group, rather than relying solely on the percentage of members enrolled in plans rated 4 Stars or higher.
The company said its rate of improvement in 11 of 12 selected HEDIS and patient-safety measures outpaced the historical compound annual growth rate over the prior four years. Rechtin said the measures were selected because Humana had consistent longitudinal data for comparison and that management believes they are representative of broader performance.
Humana said it does not know the industry thresholds that will ultimately determine Stars outcomes and therefore cannot guarantee a result when the final data are released. The company expects to enter its annual Stars blackout period once it receives plan preview information from the Centers for Medicare & Medicaid Services beginning in August, with final data expected in October.
For bonus year 2029, Humana said it remained 5% ahead of last year’s quality-improvement rate on a per-member basis in key HEDIS measures at the end of the second quarter. New members’ engagement levels were in line with, and on some measures above, those of renewing members, management said.
Humana plans to host a virtual investor update on Dec. 10. Rechtin said the company expects by then to have full visibility into bonus year 2028 Stars results and preliminary insights into 2027 membership trends. He characterized the event as a “mark to market” on existing commitments rather than a change in strategy or financial goals.
Capital Actions, Medicaid and Leadership Humana said it has agreed to divest its minority interest in Gentiva in a transaction valued at approximately $900 million and expected to close in the fourth quarter. Rechtin said proceeds will largely fund the company’s recent acquisition of MaxHealth.
The company also established $1.5 billion in contingent capital facilities using pre-capitalized trust securities, or PCAPS. Mellet said the facilities provide long-duration contingent liquidity without increasing balance-sheet leverage unless drawn, and Humana does not anticipate using them in the near or medium term.
In Medicaid, Humana said it was awarded a statewide Illinois Medicaid managed-care contract scheduled to begin in January 2027. Rechtin said Humana was the only new entrant awarded a contract alongside five incumbents.
Separately, the company announced that Paul Smith, Anthropic’s chief commercial officer, and Fred Crawford, the former president and chief operating officer of Aflac, will join Humana’s board of directors.
About Humana (NYSE:HUM)Humana Inc NYSE: HUM is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana's products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.
In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Humana Inc. targets a sustainable 3% pre-tax margin by 2028, focusing on Medicare Advantage plan quality and operational efficiency. Despite robust revenue growth, HUM's profit margins have sharply declined, with Q2 2026 pre-tax margin at 1.8%, down from 6.7% in 2020. Management remains committed to margin recovery via improved Stars ratings, cost reductions, and selective plan exits, aiming for top-quartile performance.
Operating Cost Ratio: Down 120 basis points year over year in Q2.Full-Year Operating Cost Reduction Expectation: Approximately 150 basis points.2026 Cost Trend:
Key Takeaways Humana beat Q2 earnings estimates as revenues rose on premium gains and higher medical membership.HUM's Insurance membership reached 17.9 million, exceeding estimates with 20.7% year-over-year growth.Humana maintained its 2026 revenue outlook while lowering GAAP EPS guidance to at least $6.52. Humana Inc. (HUM - Free Report) reported second-quarter 2026 adjusted earnings of $7.61 per share, which beat the Zacks Consensus Estimate by 22.4%. The bottom line rose 21.4% year over year.
Adjusted revenues improved 26.2% year over year to $40.9 billion. The top line surpassed the consensus mark by 0.6%.
The strong quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its primary care business. A rise in overall medical membership also contributed to the upside. However, the upside was partly offset by escalating operating expenses and a deteriorating benefit ratio.
HUM’s Q2 Operational UpdateHumana’s premiums totaled $38.8 billion, which advanced 26.4% year over year, and surpassed the Zacks Consensus Estimate of $38.6 billion and our estimate of $38.1 billion. Services revenues rose 27.1% year over year to $1.8 billion, beating the consensus mark of $1.7 billion. Investment income of $253 million fell 7% year over year in the quarter under review. However, the metric beat the consensus mark of $235.3 million and our estimate of $241.9 million.
The benefit ratio came in at 91.1%, which deteriorated 140 basis points (bps) year over year. Total operating expenses increased 26.3% year over year to $39.5 billion, higher than our estimate of $38.9 billion. The year-over-year increase was due to higher benefits and operating costs. The adjusted operating cost ratio of 9.7% improved 120 bps year over year.
HUM’s net income increased 27.6% year over year to $693 million but beat our estimate of $562.1 million.
Q2 Segmental Update of HUMInsuranceThe segment’s revenues rose 25.9% year over year to $39.1 billion in the second quarter on the back of improved per-member premiums derived from HUM’s Medicare and stand-alone PDP businesses, supported by improved Medicare Advantage benchmark funding from the Centers for Medicare and Medicaid Services and a higher Part D direct subsidy tied to the IRA.
Adjusted operating income grew 7% year over year to $824 million. The benefit ratio deteriorated 130 bps year over year to 91.2%. The operating cost ratio of 7.1% improved 120 bps year over year.
Total medical membership of the segment was 17.9 million as of June 30, 2026, which rose 20.7% year over year. The metric beat the Zacks Consensus Estimate of 17.5 million and our estimate of 17 million.
CenterWellThe unit recorded revenues of $6.8 billion in the quarter under review, which improved 22.6% year over year and surpassed the Zacks Consensus Estimate of $6.3 billion. The metric benefited from higher revenues stemming from the company’s primary care business.
Adjusted operating income rose 27.2% year over year to $514 million. The operating cost ratio of 92.4% improved 30 bps year over year, driven by the ongoing maturation of the v28 risk model update within the company’s primary care business and its cost-cutting and transformation strategy.
Humana’s Financial Update (As of June 30, 2026)Humana exited the second quarter with cash and cash equivalents of $6.9 billion, which rose 64.1% from the 2025-end level. Total assets of $57.2 billion increased 16.9% from the figure at 2025-end.
Long-term debt amounted to $12 billion, down 3.2% from the figure as of Dec. 31, 2025. Debt to capitalization deteriorated 200 bps year over year to 42.7% at the second-quarter end.
Total stockholders’ equity of $19.3 billion advanced 8.8% from the 2025-end figure.
HUM generated net cash from operations of $3.2 billion in the first half of 2026, which more than doubled year over year.
HUM’s Capital Deployment UpdateHumana bought back shares worth $108 million in the first half of 2026. It also paid dividends of $214 million during the same period.
2026 View by HUMRevenues are still projected to be a minimum of $160 billion, which implies a 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are expected to continue to be forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are still expected to be at a minimum of $25 billion.
Adjusted EPS is still projected to be at least $9, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is now projected to be at least $6.52, down from the previously expected guidance of at least $8.36.
Management still anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is still expected to record an increase of roughly 150,000.
Membership from the Individual Medicare stand-alone PDP is still expected to increase around 1,000,000 this year. State-based contracts are still anticipated to witness membership growth within 25,000-100,000.
The GAAP benefit ratio for the Insurance segment is still likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is still expected to be at 10%, with a variability margin of plus or minus 25 basis points.
GAAP cash flow from operations is still estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are still projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5%, while the weighted average share count is anticipated at around 121 million.
HUM’s Zacks RankHUM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
How Did Peers Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation (THC - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they have performed:
Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.
Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.
UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.
Humana Inc. (NYSE: HUM) today announced that the Company's Board of Directors has elected Paul Smith and Frederick Crawford as new Board members, effective imme
Humana on Wednesday reported second-quarter results that topped estimates, as the health insurer's spending on medical services came in line with expectations.
The company also maintained its 2026 adjusted profit outlook of at least $9 per share.
The earnings beat was driven by strength across Humana's insurance business and CenterWell healthcare services unit, Humana CFO Celeste Mellet said in an interview. She said medical and pharmacy cost trends tracked in line with Humana's expectations across new and existing members. The company saw "slight favorability" in medical costs in the inpatient space, particularly among members receiving care from value-based providers, she added.
Still, in a Wednesday note, Cantor Fitzgerald analysts called the unchanged profit outlook a "disappointment" after recent earnings beats and guidance raises seen by other insurers overseeing privately run Medicare Advantage plans. Investors have been ratcheting up their expectations for the industry as some companies hike their outlooks and get a better handle on rising medical costs in those plans – an issue that has been dogging the broader sector for more than two years.
Shares of Humana fell more than 6% on Wednesday despite the solid quarter. The company is one of the largest Medicare Advantage providers serving people aged 65 and older as well as people with disabilities.
Here's what the company reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $7.61 adjusted vs. $7.22 expectedRevenue: $40.87 billion vs. $40.61 billion expectedThe company posted second-quarter net income of $694 million, or $5.73 per share, compared with $545 million, or $4.51 per share, in the same period a year ago. Excluding items like amortization and impairment charges, Humana earned $7.61 per share.
Revenue climbed to $40.87 billion from $32.39 billion in the prior-year quarter. The company's insurer and Centerwell unit both topped analysts' sales estimates for the quarter, according to StreetAccount.
Insurers, particularly those that run Medicare Advantage plans, have been pinched by an influx of people seeking care they delayed post-pandemic and high-cost specialty drugs like GLP-1s, among other factors.
But Humana's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — came in at 91.2% for the second quarter, which is in line with what analysts were expecting. Mellet said the ratio also matched the company's expectations for the quarter across both new and current members.
"I think that it's a combination of just [medical cost] trend stabilizing and then our actions as well to help drive better health outcomes for our members and our patients," Mellet said.
Still, the ratio is slightly higher than the 89.9% reported in the year-earlier period. A lower ratio typically indicates that the company collected more in premiums than it paid out in benefits, resulting in higher profitability.
Mellet said medical cost expectations for next year are "fairly consistent." The company is watching to see if services such as inpatient admissions will continue to decline this year, but she said "at this point, we call medical costs more stable."
Meanwhile, pharmacy medical cost trends remain "very elevated," driven by drug prices and the launch of new medicines, Mellet noted. She said those costs will be slightly higher next year compared to 2026, but added that it's a broader drug cost issue, not a question of member demand.
Mellet said Humana expects changes to its 2027 Medicare Advantage plans to help improve profitability and put the company on track to reach a sustainable pretax margin of at least 3% by 2028. She said the insurer also remains confident in its ability to boost earnings by expanding membership, improving the quality ratings of its Medicare Advantage plans, maintaining pricing discipline and controlling costs.
Humana (HUM - Free Report) reported $40.89 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 26.2%. EPS of $7.61 for the same period compares to $6.27 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $40.65 billion, representing a surprise of +0.59%. The company delivered an EPS surprise of +22.35%, with the consensus EPS estimate being $6.22.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Humana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Benefit ratio - Consolidated: 91.1% versus 91.2% estimated by six analysts on average.Medical Membership - Individual Medicare Advantage: 6.45 million versus 6.49 million estimated by five analysts on average.Consolidated Operating Cost Ratio: 9.8% versus the five-analyst average estimate of 9.6%.Medical Membership - State-based contracts and other: 1.6 million versus the five-analyst average estimate of 1.62 million.Revenues- Consolidated- Total services revenue: $1.78 billion versus the six-analyst average estimate of $1.71 billion. The reported number represents a year-over-year change of +27.1%.Revenues- Consolidated- Total premiums: $38.83 billion compared to the $38.59 billion average estimate based on six analysts. The reported number represents a change of +26.4% year over year.Revenues- Consolidated- Investment income: $253 million versus $235.28 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -7% change.CenterWell- Total revenues: $6.79 billion compared to the $6.3 billion average estimate based on six analysts. The reported number represents a change of +22.6% year over year.Insurance- Total revenues: $39.14 billion compared to the $38.93 billion average estimate based on six analysts. The reported number represents a change of +25.9% year over year.Insurance- Intersegment revenues: $2 million compared to the $1 million average estimate based on five analysts. The reported number represents a change of +100% year over year.Insurance- Investment income: $105 million versus the five-analyst average estimate of $118.71 million. The reported number represents a year-over-year change of -38.6%.CenterWell- Services revenue- Pharmacy solutions: $382 million compared to the $350.83 million average estimate based on five analysts. The reported number represents a change of +19% year over year.View all Key Company Metrics for Humana here>>>
Shares of Humana have returned -2.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Humana Inc (HUM) released its 8-K filing on July 29, 2026, which revealed a promising quarter amid revisited guidance for the fiscal year 2026. The company regi
Humana reported second quarter net income of $694 million as costs of care for older adults in its Medicare Advantage plans fell in line with company expectations, the company said July 29, 2026.A Humana office in Louisville, Kentucky, US, on Monday, July 31, 2023. (Photographer: Jon Cherry/Bloomberg)
Humana reported second quarter net income of $694 million as costs of care for older adults in its Medicare Advantage plans fell in line with company expectations.
Like many of its rival health insurers, the company has been struggling to manage rising medical expenses of customers in its health plans, particularly older patients like those Humana covers. Wednesday’s results reflected costs that are still high with the company’s benefit ratio, which is the percentage of premium revenue that goes toward medical costs, eclipsing 91%, compared to 89.7% in the second quarter of last year.
Medical loss ratios have risen to 90% and above for several health insurance companies as claims pile up from doctors and hospitals seeing an influx of patients with a pent up demand for medical care. The industry would prefer such ratios to be below 90% and into the mid 80s, where the industry was less than two years ago.
But Humana, which added more than 1 million enrollees in its Medicare Advantage plans this year, said its benefit ratio of 91.2 percent was “in line with management's guidance of 'slightly above 91 percent” for the quarter.
“Based on information available to date, medical and pharmacy cost trends are in line with our expectations of ‘high single digit’ trend, across both new and existing membership,” Humana said in prepared remarks released Wednesday. “There are certain areas where we have seen slight favorability, particularly in the inpatient space, with favorability more heavily concentrated in members engaged with value-based providers.”
Humana reported net income of $694 million, or $5.73 per share compared to $545 million, or $4.51 per share in the year ago period. Revenue jumped to $40.8 billion thanks largely to the influx of Medicare Advantage enrollees compared to nearly $32.4 billion in the year-ago quarter.
Medicare Advantage plans contract with the federal government to provide coverage available in traditional Medicare plus extra benefits and services to seniors, such as disease management, drug coverage and nurse help hotlines with some also offering vision, dental care and wellness programs.
Wall Street analysts have been worried about Humana’s Medicare Advantage enrollment growth of 25% at a time rivals, including UnitedHealth Group’s UnitedHealthcare and CVS Health’s Aetna pulled such plans out counties they deemed unprofitable. Humana reported 7.1 million Medicare Advantage enrollees compared to 5.8 million in the year-ago quarter.
"The first half of the year went well, and we’re right where we said we’d be at Investor Day last year," said Humana president and chief executive officer Jim Rechtin. "When we get the clinical care right and run the business more efficiently, everything else follows—stronger earnings and better health and experiences for the people we serve.”
Humana (HUM - Free Report) came out with quarterly earnings of $7.61 per share, beating the Zacks Consensus Estimate of $6.22 per share. This compares to earnings of $6.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +22.35%. A quarter ago, it was expected that this health insurer would post earnings of $9.97 per share when it actually produced earnings of $10.31, delivering a surprise of +3.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Humana, which belongs to the Zacks Medical - HMOs industry, posted revenues of $40.89 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.59%. This compares to year-ago revenues of $32.39 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Humana shares have added about 51.8% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Humana?While Humana has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Humana was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.22 on $40.87 billion in revenues for the coming quarter and $9.25 on $162.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - HMOs is currently in the top 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, The Joint Corp. (JYNT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +283.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
The Joint Corp.'s revenues are expected to be $14.7 million, up 10.7% from the year-ago quarter.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today reported consolidated pretax results and diluted earnings per share (EPS) for the quarter ended June 30, 2026 (2Q26) versus the quarter ended June 30, 2025 (2Q25) and for the six months ended June 30, 2026 (YTD 2026) versus the six months ended June 30, 2025 (YTD 2025) as noted in the tables below. Consolidated income before income taxes and equity in net losses (pretax results) In millions 2Q26 (a) 2Q25 (a) YTD 2026 (a) YTD 2025 (.
A screen displays the logo and trading information for Humana on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 6, 2023. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 29 (Reuters) - Humana (HUM.N), opens new tab on Wednesday beat Wall Street estimates for second-quarter earnings as the health insurer's spend on medical services was in line with expectations, but it left its annual adjusted profit forecast unchanged.
Shares of the company were down about 9% in premarket trading.
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Humana is one of the largest providers of Medicare Advantage plans serving people aged 65 and older as well as people with disabilities.
Investors have been raising their expectations for insurers, after others including larger peer UnitedHealth (UNH.N), opens new tab raised its outlook and have done a better job at controlling costs.
Once a key source of profit growth for insurers, these privately managed Medicare Advantage plans have come under pressure from rising medical costs for three years as well as tighter reimbursement rates, leading some insurers to scale back or exit underperforming markets.
Humana reported a quarterly medical cost ratio, the percentage of premiums spent on medical care, of 91.2%, which the company said was in line with its expectations. Analysts expected a ratio of 91.19%, according to data compiled by LSEG. On an adjusted basis, the company earned a profit of $7.61 per share, compared with analysts' estimates of $7.22 per share.
Reporting by Sriparna Roy and Sneha S K in Bengaluru; Editing by Devika Syamnath
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