We recently published 10 Big Names With Painful Declines. Humana Inc. (NYSE:HUM) was one of the worst performers on Tuesday. Humana fell by 21.13 percent on Tuesday to finish at $207.93 apiece, tracking the decline in insurance companies following a flat funding in Medicare Advantage for 2027.

That 91.1% benefit ratio is harsh. For context, anything above 90% offers very scant opportunities for profitability.

The Trump administration proposed keeping Medicare rates roughly flat this year.

Shares of UnitedHealth, Humana and other health insurers were clobbered Tuesday after a preliminary payment proposal for Medicare Advantage fell way short of analyst expectations.

Humana stock plunged 21% after a shockingly low Medicare Advantage rate proposal threatens margins and clouds the insurer’s outlook.

A federal proposal targeting Medicare Advantage payments sent Louisville-based Humana’s stock down about 20% Tuesday and sparked a broader selloff in health insurers.

The CMS proposed modest payment growth for Medicare Advantage in 2027 and emphasized sustainability, accuracy, and simplicity.

Humana, a Kentucky-based, publicly traded medical insurer, offers Medicare Advantage plans in Hawaiʻi. Such plans are funded by the federal government, which provides private insurers a fixed, monthly payment per month for enrollees. The insurers pool the money and then sell policies to elderly customers, promising to cover their medical care.