Humana Inc. has lost a lawsuit challenging reductions to its Medicare bonus payments, which affirmed cuts to the insurer's quality star ratings. The court's decision prevents Humana from recovering billions in revenue, negatively impacting its 2026 profit outlook. Following the ruling, Humana's stock declined by approximately 2%, while other major health insurers such as CVS Health and UnitedHealth Group also experienced stock drops of 1.4% and 1%, respectively. Despite this setback, Humana filed a new lawsuit contesting the U.S. government's reduction of its Medicare Advantage star ratings after an earlier challenge was dismissed on technical grounds. The ongoing legal dispute involves billions of dollars in potential revenue. Additionally, Deutsche Bank has lowered its price target for UnitedHealth Group shares from $362 to $332 amid the sector's challenges.