For Humana, Solid Start to 2024 Can’t Mask Looming 2025 Troubles

Although Humana Inc. beat Wall Street’s expectations with its first-quarter 2024 earnings per share (EPS), the recently finalized 2025 Medicare Advantage and Part D rate notice nonetheless cast a shadow over the insurer’s longer-term financial projections and thus dimmed analysts’ enthusiasm.

In fact, Humana withdrew its 2025 EPS guidance of $6 to $10, with CEO Bruce Broussard partially blaming the move on the “significant difference between the final rate notice and our previous funding assumption.”

When CMS on April 1 released its final rate projection for MA and Part D plans, the agency said it anticipates plans will see a net revenue increase of 3.70% next year. But that figure did not improve compared to the projected rate increase — despite the industry’s urging — and it represents a 0.16% payment decrease excluding the assumption that MA risk scores will increase by an average of 3.86%. 

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