Major Medicare Insurer Sees Sharp Drop in Top-Rated Plan Members
Humana, a leading Medicare insurer, has announced a significant decline in members enrolled in its top-rated Medicare Advantage plans. According to preliminary 2025 data, only 25% of its members are enrolled in plans with four stars or above, down from 94% in 2024. This drop could impact the company’s revenue, as plans with higher ratings receive larger bonus payments from the Centers for Medicare and Medicaid Services.
However, Humana is contesting the data, citing potential errors in the CMS’ calculation. The company is working to ensure the accuracy of the results and is exploring options to mitigate the expected revenue impact.
In other news, Joby Aviation, a startup developing electric air taxis, has received a $500 million investment from Toyota, bringing the total investment to $894 million. This funding will support the commercialization of Joby’s electric air taxi.
Meanwhile, Salesforce has received an upgrade from Northland Capital due to positive customer feedback on its AI-powered offering, Agentforce. The firm has boosted its 12-month price target to $400 from $270, citing sustained mid-teen revenue growth.
In market news, the S&P 500 is struggling to stay in the green after a decline at the opening bell. However, analysts believe that liquidity and strong corporate profits will support higher stock prices. The 10-year Treasury yield is back around 3.80% after a higher-than-expected rise in private payrolls for September.
Tesla is under pressure after its Q3 deliveries fell short of expectations, with 462,890 vehicles delivered compared to the consensus estimate of 463,897. The EV maker produced 469,796 vehicles during the quarter.
Finally, BofA has released its top 10 stock ideas for Q4, including Spotify, Walmart, and Hasbro. Analysts expect these stocks to perform well in the remainder of the year, driven by factors such as strong gross margins, online spend, and upward estimate revisions.
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