Markets in Turmoil: Humana Stock Price Dives 23% Due to Medicare Changes
Markets are experiencing a significant downturn as Humana stock price has dropped 23% in just one week, marking its worst decline since 2009. The plunge follows Medicare's decision to downgrade several of Humana's health insurance plans, which will adversely affect their revenue from government payouts starting next year.
The week began with Humana shares trading around $320 but spiraled down to approximately $246.80 by the end of the week. Initial news broke on Tuesday, leading to a swift 24% drop and confirming the devastating impacts on Humana’s stock during the following days.
Medicare ratings are a critical revenue source for Medicare Advantage insurers like Humana, and with the new ratings shake-up, it's reported that only 25% of Humana's customers will now have four-star ratings or above, down from a staggering 94%.
This change is set to influence Humana's ability to attract and retain customers significantly.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.