News Briefs: Humana’s 1Q Results Met Expectations, Signaled Stable Costs

May 01
May 01, 2025

Humana Inc. on April 30 reported first-quarter financial results that generally met its expectations and affirmed an adjusted earnings per share (EPS) forecast of “approximately $16.25” for the full year. For the quarter ending March 31, Humana beat Wall Street’s projections with an adjusted EPS of $11.58, and reported an insurance segment medical loss ratio (MLR) of 87.4%, which was close to its previously disclosed estimate of “approximately 87.5%.” For the full year, it continues to expect an insurance MLR in the range of 90.1% to 90.5% and an individual MA membership decline of about 550,000, partly due to previously announced service area exits and plan reductions. During an April 30 conference call to discuss quarterly earnings, President and CEO James Rechtin said the company will continue to monitor trends such as “changes in consumer behavior” due to the Inflation Reduction Act. He also said Humana performed well during the Open Enrollment Period that ran from January to March. The insurer did not provide new clarity regarding its ongoing lawsuit against CMS, which alleges that CMS lowered the 2025 Star Ratings for “at least a dozen of Humana’s largest plans on the basis of just three phone calls that were handled by CMS in a manner inconsistent with the agency’s own regulations.” CMS had until April 28 to modify its decision regarding the insurer’s request for a revision and took no action, meaning its appeal is officially denied.
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Lauren Flynn Kelly

Lauren has been covering health business issues since the early 2000s and specializes in in-depth reporting on Medicare Advantage, managed Medicaid and Medicare Part D. She also possesses a deep understanding of the complex world of pharmacy benefit management, having written AIS Health’s Radar on Drug Benefits from 2004 to 2005 and again from 2011 to 2016. In addition to her role as managing editor of Radar on Medicare Advantage, she oversees AIS Health’s publications and manages the health editorial staff. She graduated from Vassar College with a B.A. in English.