Humana Falls After Losing Bid to Reverse Medicare Bonus Cuts (3)

Humana Inc. shares fell after it lost a lawsuit seeking to reverse cuts to its Medicare bonus payments, a blow for the insurer that had hoped the court would restore billions in revenue.

A Texas judge ruled in favor of a government motion to dismiss the case, allowing a downgrade of Humana’s Medicare quality ratings that’s set to squeeze the company’s profits in 2026. Humana shares dropped as much as 7.5% before paring losses.

The judge called Humana’s federal court claim “premature” because the company hadn’t exhausted all the administrative procedures over the decision. The lawsuit was dismissed “without prejudice,” ...