Humana Seeks Details of Medicare Rule as Investors’ Fears Abate

Humana Inc. said it needs more details to gauge the impact of a new Medicare policy that threatens to claw back billions from health insurers, but investors have decided it’s not nearly as bad as they feared.

With more than 5 million Medicare Advantage members, Humana is the second-largest seller of the private plans for seniors and it has the most at stake in government audits aimed at reclaiming overpayments. Administering health plans for the government program accounted for almost 80% of its $93 billion in revenue last year.

Despite the audit threat, Humana executives are sticking to their earnings ...