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☆ Health insurer stocks slide as final Medicare Advantage rates disappoint
▼ + stars: | 2024-04-02 | by ( Annika Kim Constantino | ) www.cnbc.com time to read: +1 min

Shares of U.S. health insurers fell Tuesday after the Biden administration didn't boost payments for private Medicare plans as much as the insurance industry and investors had hoped. Shares of CVS Health fell more than 8% on Tuesday, while UnitedHealth Group 's stock slid nearly 7%. Shares of Elevance Health dropped more than 3% and Centene 's stock fell 6%. Meanwhile, Humana 's stock fell more than 10%. The health-care giant is far more dependent on those private Medicare plans, known as Medicare Advantage, than its rivals.

Persons: Biden, Humana Organizations: Humana Inc, CVS Health, Elevance Health Locations: Louisville , Kentucky, U.S

Humana surprised Wall Street again on Thursday with a lower-than-expected earnings forecast as insurers that sell Medicare Advantage plans continue to struggle with rising care costs. Health insurance stocks tumbled last week after Humana also scaled back its 2023 profit expectations due to those rising costs. Humana said then that its Medicare Advantage patients used more inpatient care than it expected in November and December. The health insurer also saw more growth in care that doesn’t involve a hospital stay, like doctor visits and outpatient surgeries. Medicare Advantage plans are one of Humana’s biggest forms of coverage outside insurance it provides for military families and retirees.

Persons: Wall, Humana, UnitedHealth Organizations: Humana, Medicare, Inc, Humana Inc, Analysts, Elevance Health Locations: Louisville , Kentucky

☆ Humana stock plunges on dismal 2024 forecast, as insurers face soaring medical costs
▼ + stars: | 2024-01-25 | by ( Annika Kim Constantino | ) www.cnbc.com time to read: +3 min

Photographer: Luke Sharrett/Bloomberg via Getty ImagesShares of Humana plummeted on Thursday after the health insurer issued dismal full-year earnings guidance, citing soaring medical costs that are dogging the broader insurance industry. The guidance adds to Wall Street's concerns about health insurance company profits falling as medical costs jump. UnitedHealth on Friday also reported its own jump in medical costs, though it was less extreme than Humana's. Its forecast dragged down other health insurance stocks. But unlike Humana, the insurer forecast 2024 earnings above estimates on Wednesday, after higher premiums in its commercial business helped control medical costs in the fourth quarter.

Persons: Luke Sharrett, Cigna, Humana Organizations: Humana Inc, Bloomberg, Getty, Humana, CVS Health, Elevance, Medicare Locations: Louisville , Kentucky, U.S

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNov 29 (Reuters) - Cigna (CI.N) and Humana (HUM.N), two of the biggest U.S. health insurers, are in talks for what could be the largest merger announced in 2023, according to a source familiar with the matter. A Humana and Cigna combination would give the merged company the scale to rival UnitedHealth Group (UNH.N) and CVS Health (CVS.N). In July 2016, the Justice Department filed lawsuits against two health insurance mergers on the same day, saying they would lead to less competition and higher prices for Americans. Health insurers have been facing higher medical costs as people return for procedures they had put off during the pandemic. Humana in February said that it would sell its commercial business but keep its Medicare Advantage products.

Persons: Andrew Kelly, Cigna, Cigna's, Aetna, Bill Baer, Andre Barlow of Doyle, Barlow, Mazard, Bernstein, Lance Wilkes, Craig Garthwaite, Manas Mishra, Diane Bartz, Deena Beasley, Caroline Humer, Bill Berkrot Organizations: Humana Inc, REUTERS, Street Journal, UnitedHealth, CVS Health, Humana’s, Medicare, Affordable, Justice Department, Humana, U.S ., Reuters, Northwestern University, Thomson Locations: Queens , New York City, U.S, Cigna, Bengaluru, Washington, Los Angeles

☆ US health insurers Humana, Cigna in talks to merge - WSJ
▼ + stars: | 2023-11-29 | by ( ) www.reuters.com time to read: +1 min

[1/2] Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNov 29 (Reuters) - Health insurers Cigna (CI.N) and Humana (HUM.N) are in talks for a merger, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Cigna's shares were down 4.4% in noon trading, while Humana's stock was flat. The companies did not immediately respond to Reuters requests for comment. Reporting by Manas Mishra in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrew Kelly, Cigna, Manas Mishra, Sriraj Organizations: Humana Inc, REUTERS, Health, Cigna, Wall Street, Thomson Locations: Queens , New York City, U.S, Bengaluru

☆ The sell-off in Humana is overdone after strong earnings. Jim Cramer says buy the stock
▼ + stars: | 2023-11-01 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +7 min

"The story is on track, and I think you buy the stock," Jim Cramer said during Wednesday's Morning Meeting . Since its 2023 lows on July 13, Humana stock rallied more than 23% compared with a roughly 7% slide in the S & P 500 over the same stretch. Management's initial commentary on 2024 earnings and Medicare Advantage membership growth — discussed in more detail below — may also have left investors wanting. Humana also expects EPS growth in 2024 to fall on the lower end of its historical long-range 11%-to-15% target. Capital allocation Humana still expects to buy back about $1.5 billion worth of stock in 2023, finance chief Diamond said on the earnings call.

Persons: —, Jim Cramer, they've, UnitedHealth, Humana, Susan Diamond, Diamond, Bruce Broussard, Jim Rechtin, Broussard, Jim Cramer's, Jim Organizations: Medicare, Revenue, Humana, UnitedHealth, CNBC, Inc

☆ Humana shares fall as reaffirmed 2023 profit view disappoints
▼ + stars: | 2023-11-01 | by ( Khushi Mandowara | ) www.reuters.com time to read: +2 min

Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. The health insurer stuck to its 2023 adjusted profit target of at least $28.25 per share. As of Sept. 30, 5.9 million members were enrolled in its Medicare Advantage plans, up 14.7% from a year ago. The company raised its forecast for 2023 Medicare Advantage membership for the second time this year, and now expects to add at least 860,000 people. It reported a quarterly adjusted profit of $7.78 per share, beating analysts' estimate of $7.16 per share.

Persons: Andrew Kelly, Humana, Julie Utterback, Utterback, UnitedHealth, Khushi, Milla Nissi Organizations: Humana Inc, REUTERS, Wednesday, Health, Humana, Medicare, Thomson Locations: Queens , New York City, U.S, Bengaluru

The insurer said the rule, which would apply retroactively, was "arbitrary and capricious," and threatened "unpredictable consequences for Medicare Advantage organizations and the millions of seniors who rely on the Medicare Advantage program for their healthcare." Close to half of the approximately 65 million Medicare enrollees sign up for Medicare Advantage. Medicare Advantage plans differ from traditional Medicare because private companies offer them, and are reimbursed by the government for care. Though Humana is based in Louisville, Kentucky, it filed its lawsuit with the U.S. District Court in the Northern District of Texas. The case is Humana Inc et al v Becerra et al, U.S. District Court, Northern District of Texas, No.

Persons: Andrew Kelly, Humana, Biden, Xavier Becerra, District Judge Reed O'Connor, Becerra, Jonathan Stempel, Leroy Leo, Richard Chang Organizations: Humana Inc, REUTERS, U.S, overcharges, Medicare, Services, Jan, U.S . Department of Health, Human Services, CMS, Northern District of Texas, District, Fort, Affordable, Court, Northern District of, Thomson Locations: Queens , New York City, U.S, Louisville , Kentucky, Northern District, Northern District of Texas, New York, Bengaluru

☆ Humana joins UnitedHealth in flagging cost hit from rising surgeries
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +2 min

June 16 (Reuters) - Health insurer Humana Inc (HUM.N) joined larger rival UnitedHealth (UNH.N) in warning of a jump in medical costs this year due to higher-than-expected demand for surgeries and other medical procedures. Humana on Friday also pointed to elevated demand for outpatient surgeries and dental services, as well as strong inpatient demand in recent weeks, a trend it said was diverging from historical seasonality patterns. The health insurer generated more than 80% of its premiums and services revenue in 2022 from offering government-backed Medicare plans. UnitedHealth had flagged higher costs earlier this week following an increase in surgeries among older adults, wiping out billions in the market capitalization of health insurers including Humana. On the flip side, the rise in medical procedures is expected to help hospital operators and medical device makers, especially those in the orthopedic space.

Persons: UnitedHealth, Leroy Leo, Anil D'Silva Organizations: Humana Inc, Humana, Thomson Locations: Bengaluru

☆ UnitedHealth falls on warning of higher medical costs, drags down rivals
▼ + stars: | 2023-06-14 | by ( Leroy Leo | ) www.reuters.com time to read: +2 min

The warning also dragged down shares of rival health insurers that largely benefited from delayed non-urgent surgeries such as hip and knee replacements and hospital staffing shortages that had further led to fewer procedures. UnitedHealth, at a Goldman Sachs healthcare conference, highlighted elevated demand for outpatient medical procedures, particularly related to knees and hips, from patients in Medicare health plans meant for those aged 65 and above. UnitedHealth also expects its full-year medical loss ratio at the upper end of its forecast. UnitedHealth's 18.51 forward 12-month price-to-earnings ratio - a common benchmark for valuing stocks - is higher than rival Cigna Corp's (CI.N) 10.29 and CVS Health Corp (CVS.N) 8.26. Shares of Humana Inc (HUM.N) fell 7%, while Elevance Health and CVS Health Corp's (CVS.N) fell more than 3% each in premarket trading.

Persons: Goldman Sachs, Tim Noel, UnitedHealth, Julie Utterback, Cigna Corp's, Leroy Leo, Shinjini Organizations: UnitedHealth, Goldman, CVS Health Corp, Humana Inc, Elevance, CVS Health, Thomson Locations: Bengaluru

REUTERS/Mike Blake/File Photo/File PhotoJune 14 (Reuters) - Health insurer stocks dropped sharply on Wednesday after UnitedHealth Group (UNH.N) said costs were on the rise for the largest U.S. healthcare provider by market value due to an increase in surgeries among older adults. Shares of industry bellwether UnitedHealth fell 7.3% to $455.11, wiping out roughly $42 billion from the company's market capitalization in the current trading session. Meanwhile, stocks of medical device makers and hospital operators rose, as increased frequency of surgeries mean more revenue for them. The company highlighted strong demand for hip and knee procedures at outpatient centers, as well as for home health services and behavioral services. Elevance Health (ELV.N), CVS Health Corp (CVS.N), Centene Corp (CNC.N) and Cigna Group (CI.N) fell between 6% and 7.5%.

Persons: Mike Blake, bellwether, UnitedHealth, Jefferies, Brian Tanquilut, Zimmer Biomet, Leroy Leo, Bhanvi, Manas Mishra, Shinjini Organizations: REUTERS, UnitedHealth, Medicare, Humana Inc, Reuters Graphics, Elevance, CVS Health Corp, Centene Corp, Cigna, Elevance Health Inc, CVS, Healthcare, Tenet Healthcare, Stryker, Thomson Locations: Santa Ana , California, U.S, Bengaluru

☆ US FTC expands probe into pharmacy benefit managers
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

May 17 (Reuters) - The U.S. Federal Trade Commission said it had sought information from two privately held companies that negotiate drug rebates on behalf of pharmacy benefit managers (PBMs) as part of its probe into how PBMs affect pricing of prescription drugs. The two companies, Zinc Health Services and Ascent Health Services, are group purchasing organizations, that negotiate after-market discounts or rebates with drug manufacturers on behalf of PBMs and hold the contracts that govern those rebates. Zinc Health negotiates rebates for CVS Health Corp (CVS.N) and Ascent Health for Cigna Group's (CI.N) Express Scripts unit and Prime Therapeutics, which is a privately held PBM, the FTC said on Wednesday. PBMs act as middlemen and negotiate rebates and fees with drug manufacturers, create lists of medications that are covered by insurance, and reimburse pharmacies for patients' prescriptions. Reporting by Manas Mishra in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Insurer Humana lifts profit view as medical costs drop in govt plans
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

April 26 (Reuters) - Humana Inc (HUM.N) raised its annual adjusted profit forecast on Wednesday after lower medical costs in the firm's government-backed health insurance business helped it beat profit estimates for the first quarter. That has driven increased investor scrutiny into whether one-time items are helping lower medical costs artificially, hurting shares of rivals UnitedHealth (UNH.N) and Elevance (ELV.N) earlier this month despite both beating profit estimates. Medicare Advantage is its main business of government-backed health insurance for the elderly or those with certain disabilities. The impact of its exit from the commercial business was not included in adjusted figures for the quarter, Humana said. Its adjusted profit came in at $9.38 per share, beating estimates of $9.27.

☆ Humana's outlook brightens, positioning the health insurer for a year of upside
▼ + stars: | 2023-04-26 | by ( Zev Fima | ) www.cnbc.com time to read: +5 min

Adjusted revenue increased 12% year-over-year, to $25.65 billion, slightly below analysts' forecasts of $26.44 billion, according to estimates compiled by Refinitiv. Looking forward, we expect the strong membership-growth rates seen in the first quarter to drive further upside throughout 2023. The 2023 benefits expense ratio range was left unchanged, in a range of 86.3% to 87.3%, slightly above the 86.6% ratio predicted by analysts at the midpoint. Full-year operating cash flow guidance was also left unchanged, at $4.5 billion, compared with analysts' forecasts for $4.36 billion. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

April 26 (Reuters) - Humana Inc (HUM.N) raised its annual adjusted profit forecast on Wednesday after lower medical costs in the firm's government-backed health insurance business helped it beat profit estimates for the first quarter. Some analysts stressed on increased investor scrutiny into whether certain one-time items were helping lower medical costs artificially. Humana CFO Susan Diamond said the insurer saw favorable cost trends in the quarter even as hospitals reported a recovery in procedures. On an adjusted basis, Humana expects annual profit per share of at least $28.25, compared with its previous forecast of at least $28. For the first quarter, it reported adjusted profit of $9.38 per share, beating estimates of $9.27.

WASHINGTON, March 31 (Reuters) - The U.S. government announced on Friday a lower than expected 1.1% average cut of 2024 reimbursement rates for health insurers that offer coverage through the Medicare Advantage program, boosting shares of the market's largest players. Health insurers who operate Medicare Advantage plans have come under pressure after the government last month proposed new rules for an audit program to avoid overpaying them. The companies are among the largest players in the Medicare Advantage market in which private insurers are paid a set rate by the government to manage member healthcare. Medicare Advantage covers nearly half of the 65 million people enrolled in the government's Medicare program for people aged 65 and older or disabled. The agency pegged the spending increase in the traditional Medicare program, which in previous years was the main factor determining how much the agency pays Medicare Advantage insurers, at 2.3%, up from 2.1% in its initial proposal.

☆ Drug Middlemen Accused of Price Fixing by Ohio Attorney General
▼ + stars: | 2023-03-27 | by ( Jared S. Hopkins | ) www.wsj.com time to read: 1 min

A price-fixing lawsuit that Ohio filed Monday against several firms that manage billions of dollars in drug benefits ratchets up scrutiny of the companies while shining a spotlight on their new tactic using overseas subsidiaries. The lawsuit filed Monday by the Ohio attorney general in a state court alleges Cigna Corp., Humana Inc. and Prime Therapeutics LLC shared pricing and other information gathered by a Swiss subsidiary to gain leverage during negotiations with drugmakers for rebates.

☆ Humana Exits Employer Insurance Business
▼ + stars: | 2023-02-23 | by ( Will Feuer | Anna Wilde Mathews | ) www.wsj.com time to read: 1 min

Humana’s departure from its Employer Group Commercial Medical Products business will happen over the next 18 to 24 months. Humana Inc. said it would exit its Employer Group Commercial Medical Products business, including all fully insured, self-funded and federal employee health benefit medical plans. The health-insurance company said the move comes after a strategic review that determined the business was no longer positioned to sustainably meet the needs of customers or to support Humana’s long-term strategic plans.

☆ Humana to exit employer group insurance business
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: 1 min

Feb 23 (Reuters) - Humana Inc (HUM.N) said on Thursday it will exit the employer group insurance business in a phased manner over the next 18 to 24 months and focus primarily on government-funded programs and specialty businesses. The company said it does not expect the move to impact its full-year 2023 forecast. It now expects first-quarter earnings to represent about 33% of full-year 2023 adjusted earnings per share, compared with 35% estimated previously. Humana also anticipated a roughly 30 basis points increase in its medical cost ratio, a percentage of its spends on claims to the premiums it collects, for the first quarter. It however, expects, an impact on the medical cost ratio for the full year.

Companies Humana Inc FollowFeb 1 (Reuters) - Humana Inc (HUM.N) on Wednesday beat Wall Street estimates for quarterly profit as the health insurer's investment income jumped, even as the company reported higher-than-expected medical costs. Health insurers' costs were expected to decline on lower COVID-19-related hospitalizations, though there were concerns around a surge in flu and respiratory syncytial virus cases in the last quarter of 2022. The health insurer said it expects to add at least 625,000 members to its Medicare Advantage plan this year. Excluding one-off items, the health insurer reported a profit of $1.62 per share, higher than analysts' average estimate of $1.46 per share, according to Refinitiv data. The company's $160 million investment income was higher than Wall Street estimates of $136.7 million, Oppenheimer analyst Michael Wiederhorn said.

☆ Humana profit beats estimates on strength in govt-backed insurance
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

Companies Humana Inc FollowFeb 1 (Reuters) - Humana Inc (HUM.N) beat Wall Street estimates for quarterly profit on Wednesday on strength in its government-backed insurance business for older adults. This was, however, higher than analysts' expectations of 87.20%. Excluding one-off items, the health insurer reported a profit of $1.62 per share, higher than analysts' average estimate of $1.46 per share. The company forecast adjusted profit of at least $28 per share for 2023, in line with analysts' expectations. Reporting by Leroy Leo and Khushi Mandowara in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Rite Aid CEO Heyward Donigan Leaves Drugstore Chain
▼ + stars: | 2023-01-09 | by ( Dean Seal | ) www.wsj.com time to read: 1 min

Rite Aid Corp. on Monday said that President and Chief Executive Heyward Donigan has left the drugstore chain, whose shares have been hovering near all-time lows as losses mount. The company tapped board member Elizabeth Burr as an interim CEO as it conducts a search for a new leader. Ms. Burr is a health industry veteran, having previously served as chief innovation officer at the health insurance giant Humana Inc.

☆ With Debt Coming Due, Investment-Grade Companies Are Paying Up, Too
▼ + stars: | 2022-12-01 | by ( Nina Trentmann | ) www.wsj.com time to read: +7 min

What’s more, volatile markets have resulted in fewer opportunities for companies to sell their debt. Investment-grade U.S. companies have between $550 billion and $750 billion coming due per year from 2023 through 2027, according to Goldman Sachs Group Inc., with about $59 billion left to pay off or refinance in 2022. Of the $615.54 billion, $504.31 billion were new issuances, compared to $111.23 billion in refinancings, Dealogic said. But investor demand for bonds has been stronger in recent days, leading Amazon.com Inc. and others with near-term debt coming due to the market. Among the businesses that recently took out bond debt at a higher cost is retail giant Walmart Inc.

☆ Humana profit beats on slow elective-care rebound
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +2 min

Nov 2 (Reuters) - Humana Inc (HUM.N) beat third-quarter profit estimates on Wednesday, as a sluggish recovery in elective procedures helped the health insurer keep medical costs in check. Humana's guidance to enroll 325,000 to 400,000 Medicare Advantage members next year marks a return to industry rate, one year ahead of schedule, Stephens analyst Scott Fidel said in a note. In September, Humana raised it forecast, citing no COVID-19 "headwind materializing" and lower-than-expected medical cost trends in the company's Medicare Advantage and Medicaid businesses. A lower ratio is better for a health insurer as it indicates a tight rein on costs. Humana said its adjusted profit for the third quarter was $6.88 per share, above estimates of $6.28, according to Refinitiv data.

☆ Deutsche Bank upgrades Humana for the same reasons we own this big 2022 winner
▼ + stars: | 2022-10-26 | by ( Paulina Likos | ) www.cnbc.com time to read: +5 min

These so-called Star Ratings are designed to help consumers evaluate the quality of Medicare Advantage (MA) and Medicare Part D prescription drug plans, according to the CMS . Humana stock was left for dead at the beginning of the year when it warned about Medicare Advantage growth. Humana is "poised to take market share" in Medicare Advantage this enrollment season. Furthermore, we believe Humana offers a superior Medicare Advantage package and represents new leadership in the health care industry. Earlier this month, Humana released the details of its newly expanded and enhanced Medicare Advantage plan offering.

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