Humana Faces Setback in Fight to Reverse Medicare Bonus Cuts (1)

Humana Inc. lost an administrative appeal in its ongoing battle to reverse changes to Medicare quality ratings that threaten billions of dollars in revenue next year.

The health insurer disclosed the decision in a legal filing Tuesday. Humana is still pursuing a separate lawsuit against the federal government in Texas district court.

The stakes in that lawsuit are huge: A win would almost double Humana’s 2026 profit, Barclays analysts wrote last week, to $27.74 a share. Wall Street analysts currently estimate the company will earn less than half of that.

Humana shares fell 3.4% in trading after US markets closed. ...