Humana, Clover rise on Medicare Advantage star ratings
Humana’s Medicare Advantage contract was raised to four stars from 3.5, while Clover’s PPO plans got a five-star rating and its HMO plan received 4.5 stars. CVS Health and Alignment Healthcare fell after their ratings were cut.
S. health department for the quality of their care. 5 stars. 5 star rating.
4 million members, will be eligible for bonus payments from CMS that will boost earnings. Humana stock shot up 14% to 443 before the open, according to MarketSurge. 97 buy point. Clover stock jumped 11% in premarket trading on Friday.
18. Stock Market Today: Apple Sells Off, Dow Rises CVS HEALTH DIVES AFTER MEDICARE RATINGS FALL Meanwhile, rival health insurance companies Alignment Healthcare and CVS Health tumbled after their plans' ratings got cut. 5 stars. CMS cut Alignment's largest California contract by the same amount.
Alignment disputed CMS' conclusions, saying it would pursue "administrative remedies" to appeal the rating. Its six other Medicare Advantage contracts all got at least four stars. Alignment stock was down about 23% on Friday morning. For CVS Health, the ratings downgrade mean the percentage of its Medicare Advantage customers enrolled in plans rated four stars or higher fell to 70% in 2027 from 82% in 2026, according to estimates from TD Cowen released on Friday.
5-star plans or better fell to 35% in 2027 in from 63% this year. Because the lower ratings mean fewer bonus payments from CMS, TD Cowen lowered its outlook for CVS Health's 2028 adjusted earnings per share by 41 cents. Shares of CVS Health fell more than 3% on Friday. The disappointing news comes as CVS Health stock is in a monthslong rut.
68 on July 22, according to MarketSurge. Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more. com Investor's Business Daily - Your edge in the stock market This content was created by Investor's Business Daily, which is operated by Dow Jones & Co. IBD is run independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires October 09, 2026 08:29 ET (12:29 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.