Humana Does Not Alter 2025 Outlook Despite Sales Miss And Medicare Membership Decline

Humana Inc. (NYSE:HUM) connected Wednesday posted a first-quarter adjusted EPS of $11.58, up from $7.23 a twelvemonth ago, beating the statement of $10.07.

Humana income accrued from $29.6 cardinal to $32.11 billion, somewhat missing the statement of $32.22 billion.

The gross was driven by higher per-member Medicare and state-based declaration premiums. The Medicare summation was chiefly driven by an accrued nonstop subsidy owed to the Inflation Reduction Act (IRA) and rank maturation successful the company’s stand-alone PDP and state-based contracts businesses.

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Humana ended the archetypal 4th with 14.84 cardinal successful full aesculapian membership, down from 16.35 cardinal successful December 2024 and 16.17 cardinal successful March 2024. Individual Medicare Advantage membership reached 5.22 million, down from 5.55 cardinal a twelvemonth ago.

1Q25 Insurance conception payment ratio of 87.4% aligns with the antecedently disclosed anticipation of astir 87.5%.

In its prepared remarks, the institution said, “We are pleased with a coagulated commencement to 2025. Our archetypal 4th Insurance conception payment ratio of 87.4% reflects aesculapian outgo trends that developed successful enactment with our expectations.”

The institution states, “We stay committed to achieving an idiosyncratic Medicare Advantage (MA) pretax borderline of ‘at slightest 3%’ implicit clip and stay assured successful our anticipation that our 2025 MA pricing volition thrust the intended underlying borderline improvement.”

Guidance: Humana expects 2025 GAAP income of $126 billion-$128 cardinal versus the statement of $126.21 billion.

Sales guidance includes security conception income of $121 billion—$123 cardinal and center-well conception income of $20.5 billion—$21.5 billion.

The institution said CenterWell Pharmacy was selected arsenic the fulfillment pharmacy for NovoCare Pharmacy, operated by Novo Nordisk A/S’ (NYSE:NVS) value nonaccomplishment medicine for cash-pay customers.

The insurer expects an yearly rank diminution of astir 550,000 for idiosyncratic Medicare Advantage, including the company’s determination to exit definite unprofitable plans and counties. Group Medicare Advantage volition stay comparatively flat, and Medicare stand-alone PDP maturation volition beryllium astir 200,000.

Humana reaffirms the 2025 adjusted EPS outlook of $16.25 versus the statement of $16.35.

For 2025, Humana expects its security segment’s payment ratio guidance of astir 90.1-90.5%.

The institution added, “Looking ahead, the 2026 last MA complaint announcement amended reflects the aesculapian outgo inclination situation and should alteration greater stableness wrong the manufacture arsenic it serves the 34 cardinal seniors who trust connected the MA program.”