08:55 ET - The Trump administration's proposal to keep rates for Medicare insurers roughly flat next year exacerbates Humana's challenges in improving its profitability, say Morgan Stanley analysts, who downgrade the stock to underweight and lower its price target to $174 from $262. Humana has disproportionate exposure to Medicare Advantage, which means lower-than-expected rates could pose massive pressure earnings. The proposal "adds a layer of policy uncertainty with regard to the administration's support of the MA program," the analysts say. Additionally, Humana has not matched competitors' aggressive pullback from less profitable Medicare plans, "leaving it in a precarious position in terms of profit improvement," the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 08:55 ET (13:55 GMT)

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