Humana Inc. (HUM) has withdrawn its 2025 profit forecast due to disappointing government Medicare Advantage (MA) reimbursement rates. The insurance provider cited a medical cost trend environment that is not adequately addressed by the final MA rate notice. Humana’s medical benefit ratio, the percentage of premiums spent on medical care, increased to 88.9% in the first quarter. The company intends to prioritize margin recovery over membership growth in the near term, but no longer believes the previously communicated $37 Adjusted EPS target for 2025 is achievable. Humana aims to deliver $6 to $10 of Adjusted EPS growth in 2025 through MA pricing actions, earnings growth in other lines of business, and productivity and trend mitigation initiatives.