Former Louisiana Governor Bobby Jindal accuses the Biden administration of quietly cutting funding for Medicare Advantage, harming millions of seniors. He alleges this is a partisan move disguised as payment adjustments, impacting premiums, benefits, and access to care, and potentially hindering the incoming Trump administration’s ability to reverse the cuts.
Humana Inc. (HUM) exceeded analysts’ expectations for its third-quarter earnings, driven by strong growth in Medicare Advantage membership and higher per-member premiums. The company also raised its 2024 guidance for individual Medicare Advantage membership growth and earnings, but acknowledged challenges to its Medicare Advantage margin target due to the impact of the 2025 MA Star ratings.
Cigna and Humana have reignited merger discussions, potentially creating a major force in the health insurance industry. The deal, if finalized, would combine Cigna’s commercial insurance strengths with Humana’s dominance in Medicare Advantage, aiming to navigate the increasingly complex and competitive healthcare landscape.
Humana Inc. (HUM) shares have plummeted 30.2% in the past month, driven by a downgrade in Medicare Advantage plan ratings. This has raised concerns about the company’s future profitability and member growth. Despite the decline, some investors see this as a potential buying opportunity. However, with rising costs, debt, and a bearish outlook, caution is advised.
Clover Health’s stock price is experiencing a significant surge today, fueled by a new partnership with The Iowa Clinic and the appointment of a new COO. This news comes as short interest in the company decreases and social media buzz around CLOV continues.
Clover Health’s subsidiary, Counterpart Health, has secured a multi-year agreement with Iowa Clinic to utilize its AI-driven solution, Counterpart Assistant, for managing Medicare Advantage and Medicare Shared Savings Program patients. The agreement aims to improve clinical outcomes and provide financial benefits for both Iowa Clinic and its network partners.
Clover Health’s stock jumped after its subsidiary, Counterpart Health, signed a multi-year agreement with The Iowa Clinic to provide its cloud-based software platform for Medicare Advantage and Shared Savings Program patients. The deal highlights Clover Health’s commitment to innovative healthcare solutions and could significantly impact its future growth.
Despite warnings, Biden’s administration has implemented cuts to Medicare Advantage, a popular and effective program that provides affordable healthcare to seniors and individuals with disabilities. This move contradictsBiden’s campaign promise to protect Social Security and Medicare benefits. The cuts will result in increased costs for seniors and a reduction in their healthcare options. Republicans should highlight the unpopularity of these cuts, which prioritize government-controlled healthcare over private sector innovation. Seniors, who overwhelmingly support MA, need to be aware of Biden’s betrayal. This issue could resonate with voters in the upcoming election, who are wary of promises of healthcare reform from the Left.
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.
Humana, the health insurer, announced a quarterly net income of over $741 million on April 24, 2024. The company also revised its forecast upwards for the growth of its Medicare Advantage membership, a significant portion of their business. Medicare Advantage plans provide additional services and benefits to seniors, such as disease management and support hotlines. After reporting a loss in Q4 and facing higher medical costs in its Medicare Advantage business earlier this year, Humana’s recent report marks a positive turn. The company’s stock price has been affected by these previous reports.
Humana’s first-quarter net earnings were $741 million, or $6.11 per share, compared to $1.2 billion or $9.87 per share in the same quarter of 2023. The company also saw an increase in its Medicare Advantage membership, with 6.1 million enrollees at the end of the first quarter, compared to 5.6 million in the previous year’s quarter. This contributed to a rise in total revenue by over 10%, from $26.7 billion in the first quarter of 2023 to $29.6 billion this year.
