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HUM
Forbes
189 days

Humana 2024 Profits Hit $1.2 Billion As Insurer Leaves Unprofitable Medicare Markets

1. Humana reported $1.2 billion profit for 2024, but Q4 faced $693 million loss. 2. Anticipated drop of 550,000 Medicare Advantage members due to market exits. 3. Benefits expenses surged by $2.5 billion, with adjusted benefit ratio at 91.9%. 4. Total revenue rose to $117 billion, signaling potential market adjustments. 5. Future growth expected in Medicaid and CenterWell primary care expansions.

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FAQ

Why Neutral?

The loss in Q4 could dampen investor sentiment. Historically, profit declines have led to stock volatility.

How important is it?

The article highlights crucial financial metrics and strategic shifts impacting HUM's operations positively and negatively.

Why Long Term?

Medicare adjustments may stabilize over time but could affect member retention long-term. Past transitions in enrollment numbers often take years to recover.

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