Humana Shares Climb with Medicare Payment Hike

The U.S. government has taken a notable step by increasing payments to private Medicare Advantage plans by more than $25 billion. This move, which exceeds the initial proposal made in January, is a result of extensive advocacy from insurance companies.

Insurance Industry Secures Average Payment Increase of 5.06%

Despite facing increased scrutiny in Washington, the insurance industry has successfully secured an average payment increase of 5.06%, more than double the originally proposed rate.

This development is expected to have significant implications for major U.S. health insurers, including UnitedHealth Group Inc. (NYSE: UNH), CVS Health Corp. (NYSE: CVS), and Humana Inc. (NYSE: HUM), whose shares have risen following the announcement.

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Humana’s Stock Gains in Premarket

Following the announcement of increased payments to Medicare Advantage plans, shares of major health insurers have experienced notable movements.

Specifically, Humana Inc. saw its stock gain in premarket trading. As of April 8, 2025, at 08:46 EDT, the closing price stands at $254.71, with the latest premarket price reaching $301.75.

Humana’s stock performance is influenced by its key metrics, including a dividend rate of $3.54 and a yield of 1.39%. With a market cap of $30.74 billion and a trailing P/E ratio of 25.52, the company remains a significant player in the health insurance sector.

Analysts have provided a target high price of $402.23 and a target low price of $241.00, with a recommendation to hold the stock, reflecting a balanced outlook for investors.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.