Humana Individual Health Insurance | Reducing Medical Costs In Government Schemes Boosts Humanas Profit Outlook

Humana Individual Health Insurance
Humana Individual Health Insurance

Reducing Medical Costs In Government Schemes Boosts Humanas Profit Outlook | Humana Individual Health Insurance

April 26 (Reuters) – Humana Inc ( HUM.N ) raised its full-year adjusted profit forecast on Wednesday after beating first-quarter profit expectations on lower health care costs in its government-sponsored health insurance business.

The company’s optimistic outlook contrasts with uncertainty about health insurers’ 2024 earnings as they monitor the end of insurance coverage related to COVID-19 and potential cuts in government payments for some programs.

Investors are also concerned about the costs of health insurers including UnitedHealth ( UNH.N ) and Elivans ( ELV.N ) as benign medical claims are filed, even as hospitals and medical device makers recover from non-emergency procedures and routine checkups. Let’s see near me.

Humana Individual Health Insurance

Some analysts have highlighted that investors are increasingly scrutinizing whether they are helping to artificially lower health care costs.

“Investors are currently struggling with the relationship between the commentary and the report,” Stevens analyst Scott Fidell told Reuters.

Shares of Humana fell 0.6 percent in mixed trading on Wednesday, with UnitedHealth, Eleven, Centene Corp ( CNC.N ) and Cigna Group ( CIN.N ) each down about 2 percent.

Humana confirmed that membership in its Medicare Advantage unit, the backbone of government-funded health insurance for seniors and certain disabilities, rose to 5.66 million from 5.13 million in the previous quarter at the end of March.

The adjusted payroll expense ratio, or the ratio of claims paid to premiums received, was 85.9% in the quarter, well below analysts’ estimates of 86.47%, according to Refinitiv data.

Humana Individual Health Insurance

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Susan Diamond, Human’s chief financial officer, said the insurer saw a favorable cost trend in the quarter as the hospital reporting process got underway again. Humana Individual Health Insurance

On The adjusted basis, Humana expects annual earnings per share of at the least $28.25 dollar, compared to the previous forecast of at least $28 dollar. Adjusted earnings per share were $9.38 dollar in the first quarter, beating estimates of $9.27 dollar.

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