Humana built its brand by becoming known as the managed Medicare insurer. That’s why a recent CMS audit that gave lower scores to some of its plans is roiling the company, Bloomberg News reports. The percentage of Humana’s membership in plans rated four or five stars plummeted to about 37% (1.7 million) in July from 78% (2.15 million) a year earlier.
“If Humana cannot successfully mitigate the issue with CMS, it will be at a material enrollment disadvantage relative to its peers,” Chris Rigg, an analyst with Susquehanna Financial Group, told Bloomberg News.
Source: Bloomberg News