Humana (HUM) Falls 21% on Medicare Payment Update

We recently published 10 Big Names With Painful Declines. Humana Inc. (NYSE:HUM) was one of the worst performers on Tuesday.

Humana fell by 21.13 percent on Tuesday to finish at $207.93 apiece, tracking the decline in insurance companies following a flat funding in Medicare Advantage for 2027.

According to an advanced notice released on Monday, the Centers for Medicare & Medicaid Services (CMS) announced only a 0.09 percent increase in Medicare Advantage payments for next year, far lower than the 4 to 6 percent growth as expected by analysts.

“These proposed payment policies are about making sure Medicare Advantage works better for the people it serves,” said CMS Administrator Mehmet Oz.

“By strengthening payment accuracy and modernizing risk adjustment, CMS is helping ensure beneficiaries continue to have affordable plan choices and reliable benefits, while protecting taxpayers from unnecessary spending that is not oriented towards addressing real health needs,” he added.

Humana Inc. (NYSE:HUM) declined alongside its counterparts, namely CVS Health, UnitedHealth Group, Centene Corp., and Oscar Health, among others, over fears about how the updated rates would impact their profit margins next year.

Humana Inc. (NYSE:HUM) is set to hold a conference call before market open on February 11, 2026 to discuss its earnings performance for the fourth quarter and full-year 2025 periods.

Investors will also watch out for the company’s short-term outlook following policy updates.

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Disclosure: None. This article is originally published at Insider Monkey.