Humana's current situation, after the health insurer said a lower-performance rating for a widely used Medicare insurance plan hurt enrollments for 2025 and could potentially hit revenue and bonus payments in 2026.

Humana’s stock was headed for another sharp selloff on Tuesday, toward a more than four-year low, after the government cut its rating on one of the health insurer’s large Medicare Advantage plans because it missed some performance measures.

The insurer’s stock sank to its lowest level in more than a decade after the federal government lowered the rating for one of its most popular plans.