Humana Reports $195 Million Profit As Costs Land Within Expectations

Core Insights - Humana reported a net income of $195 million for the third quarter, with medical cost trends aligning with previous forecasts [2][5] - The company is reaffirming its full year 2025 adjusted earnings per share outlook of approximately $17.00, supported by solid execution and results [6] Financial Performance - Humana's net income decreased to $195 million, or $1.62 per share, compared to $480 million, or $3.98 per share in the same quarter last year [5] - Revenue increased to $32.6 billion, up from $29.4 billion in the year-ago period [5] - The insurance segment benefit ratio was reported at 91.1%, consistent with guidance of just above 91% and an increase from 89.9% in the previous year [4] Medicare Advantage Plans - The company has been experiencing higher costs in its Medicare Advantage plans, which are a significant part of its business [3] - Humana's Medicare Advantage enrollment reached over 5.2 million individuals, with a projected decline of approximately 425,000 members for FY 2025, an improvement from earlier expectations [7] Growth in Healthcare Services - Humana's CenterWell healthcare services business reported growth of 56,600 patients, or nearly 15% [8] - CenterWell Pharmacy is driving strong growth across payor agnostic offerings, with increased specialty volumes and strong direct-to-consumer growth [8] Strategic Outlook - The company is confident in its strategy of prioritizing consumer needs, with solid year-to-date performance and strong momentum heading into the Annual Election Period [9][10]