Humana is the second-largest provider of Medicare Advantage plans in the United States. The company is betting heavily on its CenterWell senior primary care platform as its long-term savior, shifting care into its own clinics to better manage total cost of care for members. The strategic focus has shifted from earnings growth to margin recovery, expected to extend through 2027-2028.
Cyborg Score Rationale
Humana expects to grow Medicare Advantage membership by more than 25% in 2026, potentially displacing UnitedHealthcare as the largest MA carrier, while adding roughly 1 million individual MA members. However, the company projects 2026 adjusted EPS of at least $9.00—significantly below the $12.00 consensus estimate. Strong growth obscured by near-term profitability challenges.
Top Insights
A $3.5 billion net Star Ratings headwind is causing membership shift from 94% in 4-star plans (2024) to 45% (2026 payment year).
Humana is exiting 194 unprofitable counties and scaling back extra benefits like dental, vision, and OTC allowances for 2026.
With 83% customer satisfaction, Humana ranks No. 1 for customer service, edging out Kaiser Permanente in independent surveys.
Individual MA margins are expected to be slightly below break-even for the 2026 fiscal year.
Named Competitors
UnitedHealthcare — Largest Medicare Advantage insurer by enrollment (declining 2026)
Aetna — Integrated health and pharmacy with Medicare Advantage presence
Anthem Medicare Plans — Major national health insurance and MA plan provider
Cigna Medicare — Health services provider with Medicare Advantage offerings
Recent Developments
(February 2026) Humana issues conservative 2026 EPS guidance of at least $9.00 vs. $12.00 consensus due to Star Ratings headwind
(February 2026) Company adds roughly 1 million individual MA members during 2026 Annual Enrollment Period, positioning for potential MA market leadership
(October 2025) Humana announces 2026 Medicare Advantage plans with focus on simplicity, stability, and cost predictability
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