Results for: Medicare Advantage

Humana (HUM) reported better-than-expected Q1 results, with revenue growth of ~11% YoY to $29.6 billion. However, adjusted EPS fell ~23% YoY to $7.23 due to an increase in the benefit ratio, which rose to ~89% from ~86% a year ago. Despite this, the company reaffirmed its full-year EPS target of ~$16.00 and benefit ratio of ~90% for its insurance segment. However, it raised Medicare Advantage annual membership growth by 50,000 to 150,000. Humana also withdrew its previously issued 2025 guidance due to uncertainty surrounding Medicare’s recent final MA rate notice.

Starting in 2025, Medicare Advantage and Part D plans will undergo significant changes. This article provides a summary of three major changes: the elimination of sales incentives for agents and brokers, the requirement for plans to send personalized notifications about unused supplemental benefits, and the cap on out-of-pocket costs for covered Part D drugs.