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Humana Reports $1.2 Billion Profit as Medicare Costs Fall Within Expectations
In a significant development, Humana has reported a profit of $1.2 billion in the first quarter of 2025, largely due to better control over medical cost trends in its Medicare Advantage plans. The company’s Medicare Advantage business, which is a significant portion of its overall operations, had been expected to face challenges due to rising costs.
However, Humana has managed to keep medical costs under control, with the benefit expense ratio improving to 87.4% in the first quarter, compared to 89.3% in the same period last year. This improvement in cost trends has allowed the company to deliver a stronger-than-expected quarterly profit.
Humana’s total revenues rose to $32.1 billion in the first quarter, driven by higher premiums from Medicare and state-based contracts, as well as growth in its CenterWell healthcare services business. The company’s president and CEO, Jim Rechtin, highlighted the strong start to the year, citing the team’s efforts to launch new initiatives and expand existing programs.
The success of Humana’s Medicare Advantage plans has been particularly notable, with the company stating that it remains committed to achieving individual Medicare Advantage pretax margins of at least 3% over time. This goal is a significant milestone for the company, as it will allow them to improve patient outcomes and support operational excellence.
In addition to its financial results, Humana also highlighted its progress in expanding its CenterWell healthcare services business and growth in Medicaid. The company’s CEO expressed confidence in the growth outlook for value-based care and Medicare Advantage, which will enable the delivery of higher-quality care to a broader range of patients and members.
Overall, this report is a significant positive development for Humana, as it highlights the company’s ability to adapt and respond to changing market conditions. The strong performance in the first quarter sets the stage for a successful year ahead.
Source: https://www.forbes.com/sites/brucejapsen/2025/04/30/humana-reports-12-billion-profit-as-medicare-costs-fall-within-expectations/
