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