Humana's 198th-Ranked Trading Volume Highlights Risk Adjustment Controversy as MedPAC Probes Coding Practices

On September 4, 2025, Humana (HUM) closed with a 0.01% gain, trading at $312.00 per share, with a volume of $0.51 billion. The stock ranked 198th in trading activity for the day.

Recent analysis highlights concerns over Medicare Advantage risk adjustment practices, with Humana and UnitedHealthcare accused of exploiting coding strategies to inflate government reimbursements. Research indicates that insurers may use aggressive diagnostic coding—such as home nurse visits to identify conditions unrelated to treatment—as a method to boost payments. This practice raises regulatory scrutiny and questions about the integrity of risk adjustment models, which could impact long-term profitability and compliance costs for health insurers.

Humana’s recent partnership agreements to expand musculoskeletal care programs suggest a strategic focus on value-based care, aligning with broader industry trends toward specialized service integration. However, the company’s stock performance remains muted, reflecting broader sector challenges tied to regulatory and reimbursement pressures.

Backtest results indicate that risk adjustment strategies have spiraled out of control, enabling insurers to aggressively code patients for higher government reimbursements. These tactics, including sending nurses to identify non-treatment-related diagnoses, highlight systemic flaws in the current risk adjustment framework, which may require policy reforms to address overpayments and ensure equitable healthcare funding.