Overview
- Humana reported second-quarter net income of $694 million and revenue of about $40.8 billion driven by a surge in Medicare Advantage enrollment.
- The company now serves roughly 7.1 million Medicare Advantage members, up from about 5.8 million a year earlier, which lifted top-line growth but increased exposure to federal bonus rules.
- Humana’s benefit ratio was 91.2 percent for the quarter, a level management said matched expectations even as industry medical costs remain elevated.
- The insurer lowered its full-year GAAP earnings target to a minimum of $6.52 per share after a significant decline in plans rated four stars or higher cut expected CMS quality bonus payments.
- Adjusted results held steady with $7.61 in adjusted quarterly EPS and an unchanged adjusted full-year guide, but the GAAP revision provoked a roughly 9 percent premarket stock drop and sharper investor scrutiny of margin sustainability.