Story Stocks®
Updated: 17-Jun-25 13:58 ET
Humana showing notable strength given its high exposure to Medicare Advantage (HUM)
- Most healthcare stocks are right around unchanged today, but Humana is showing more strength than others following the release of the Senate tax bill plan last night.
- The Senate bill makes larger cuts to Medicaid spending by setting Medicaid provider tax at 3.5% (House version of the bill set it at above 6%). However, the bill omitted Medicare Advantage cuts.
- It's this last part that is likely pushing HUM higher today.
- Humana is considered the health insurer most exposed to Medicare Advantage.
- In its 10-K, HUM disclosed that, in 2024, 75.6% of its revs came from Individual Medicare Advantage. Then when you add 6.6% of revs coming from Group Medicare Advantage, that adds up to 82.2% of revs.
- As such, investors see the Senate not touching Medicare Advantage as great news for Humana.
- However, keep in mind the bill is far from being finalized and the House needs to weigh in. However, this was a positive sign for Humana.
