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Humana Reports About 23 Percent Growth in Individual Medicare Advantage Membership for the Second Quarter of 2026 but Cuts Its Full-Year GAAP Earnings Forecast Due to Weaker Star Ratings
Humana's second-quarter results showed a sharp rebound in Medicare Advantage enrollment, but lower quality bonus payments tied to poorer star ratings led the company to reduce its full-year profit forecast under generally accepted accounting principles while holding its adjusted earnings guidance steady.
By the Goodsurance editorial teamAugust 3, 2026
Humana reported second-quarter 2026 results on July 29 showing that its individual Medicare Advantage membership grew approximately 23 percent compared with the same period a year earlier, a rebound from enrollment losses the company experienced during 2025. The company's insurance segment GAAP benefit ratio, which measures medical costs as a share of premiums, came in at 91.2 percent, roughly in line with management's guidance of slightly above 91 percent.
Despite the enrollment improvement, Humana cut its full-year GAAP earnings forecast for the year. The company attributed the revision primarily to weaker Medicare Advantage star ratings for the 2026 bonus year, which reduce quality bonus payments from CMS, as well as certain non-cash charges recognized in the first half of the year. The company reaffirmed its adjusted earnings guidance, which excludes those items, at its prior level.
Humana also reaffirmed its expectation of approximately 25 percent full-year individual Medicare Advantage membership growth over 2025, citing new sales, improved retention, and benefit design changes.
The quarterly results arrive alongside Humana's previously announced decision to exit Medicare Advantage markets serving about 600,000 current members in 2027, a strategic retreat intended to concentrate resources in higher-margin geographies and support a return to target profitability. Members in affected markets will receive a nonrenewal notice before October and will have a special enrollment period to choose new coverage.
In plain words
Humana, one of the biggest Medicare Advantage insurers, reported earnings for the spring quarter of 2026 on July 29. The company added many new Medicare members, up about 23 percent from a year earlier. But Humana received lower quality ratings from Medicare, which means it collects less in bonus payments from the government this year. Because of that, Humana lowered the profit it expects to report for the full year. The company said its Medicare medical costs are tracking close to plan. Humana also confirmed it will leave some Medicare Advantage markets in 2027, affecting about 600,000 current members who will need to find new plans.
Understand the basics first
Source: Humana
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