Humana Loses Second Lawsuit to Reverse Medicare Bonus Cuts (2)

Humana Inc. lost a lawsuit seeking to undo cuts to the bonus payments it receives from the federal Medicare insurance program, threatening billions of dollars in potential revenue.

A Texas judge ruled Tuesday in favor of the federal government, affirming a downgrade of quality ratings that are tied to payments for Medicare Advantage, a private version of the health insurance program for seniors. The judge had previously dismissed a similar case in July on procedural grounds.

Humana shares fell 3.4% at 12:53 pm in New York.

The loss bucks a trend of health insurers prevailing in lawsuits challenging Medicare Advantage ...