Overview
- Humana, which reported results Wednesday, posted first-quarter revenue of $39.6 billion and net income near $1.2 billion.
- The insurer’s benefit ratio was 89.4%, slightly better than its target of just under 90%, though it expects the ratio to tick slightly above 91% in the second quarter; this ratio shows how much premium money goes to paying members’ medical bills.
- Management reaffirmed adjusted earnings of at least $9 a share for 2026 but cut reported earnings guidance to at least $8.36 as transformation charges and lower Medicare Star Ratings weigh on results.
- Medicare Advantage membership rose to 7.1 million, and the company said it will adjust plan benefits to protect margins, signaling a shift to prioritize profit stability over aggressive growth where needed.
- Humana shares fell as much as 7% after the release, with investors focusing on the unchanged outlook and ongoing cost pressures even as 2027 Medicare Advantage payments are set to rise an average 2.48%.