Humana Posts Strong Results, Credits Value Creation Plan

November 4

Humana Inc. posted strong third-quarter results, beating the Wall Street consensus earnings projection. The firm credited its lower-than-expected medical loss ratio (MLR), financial tailwinds from merger and acquisitions (M&A) and its yearlong value-creation plan as the main drivers of the results.

The insurer reported $6.88 in adjusted earnings per share (EPS), beating the consensus projection of $6.27. Executives maintained their estimated end-of-year adjusted EPS of approximately $25.00. Centene’s MLR was 85.6%, and its total revenues reached $22.79 billion in the quarter, up from $20.6 billion in the third quarter last year. Executives said they project membership growth in 2023 of 325,000 to 400,000 members, or 7.1% to 8.7%.

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Health Plan Weekly

Peter Johnson

Peter has worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.