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189 days

Humana Stock Drops as Medicare Advantage Members Expected to Decline

1. Humana expects a 10% drop in Medicare Advantage members by 2025. 2. Fourth-quarter revenue reached $29.21 billion, exceeding analyst expectations. 3. Forecasted adjusted EPS in 2025 is $16.25, slightly below consensus. 4. Humana shares lost about 30% in the past year due to quality rating decline. 5. A significant plan's quality rating fell from 4.5 stars to 3.5 stars.

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FAQ

Why Bearish?

The forecasted decline in Medicare Advantage members indicates potential revenue loss. Historically, membership declines have negatively affected stock performance.

How important is it?

The article highlights key revenue and membership forecasts essential for understanding Humana's future performance. Changes in Medicare Advantage memberships are critical for HUM.

Why Long Term?

The projected drop in memberships will take time to materialize and affect future earnings. Long-term trends in Medicare enrollment directly impact financials.

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