Humana’s Medicare Advantage Star Ratings Drop: Legal Battle Looms Over 2025 Projections and Potential Revenue Impact
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Humana’s Medicare Advantage Star Ratings Drop: Legal Battle Looms Over 2025 Projections and Potential Revenue Impact

Humana (HUM) has disclosed a new risk, in the Litigation & Legal Liabilities category.

Humana faces a significant business risk as its Medicare Advantage plans’ Star Ratings are projected to decline in 2025, affecting only 25% of its members compared to 94% in 2024. The company has initiated legal action to challenge the 2025 ratings, yet success in this lawsuit is uncertain. A failure to overturn the ratings could severely impact Humana’s 2026 quality bonus payments from CMS and lead to adverse effects on its revenues, operating results, and cash flows. Stakeholders should monitor the development of this legal proceeding, as it could have profound implications for the company’s financial health.

The average HUM stock price target is $293.68, implying 10.27% upside potential.

To learn more about Humana’s risk factors, click here.

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