Humana issues a warning about rising medical expenses as more patients use insurance.
Medical Certificate:1 Humana Issues A Warning Insurance
Patients are receiving treatment at higher than anticipated costs, which is hurting health insurers.
Why it matters: As more people utilize their insurance policies, insurer profits decline and consumer prices usually rise.
- The main story: Humana revealed unexpectedly on Thursday that its Medicare Advantage costs increased due to “higher than anticipated inpatient utilization” (formally speaking, hospital admissions) in November and December.
- The company also stated that it expects the higher utilization to persist.
The insurer also noted increases in trends for non-inpatient care, mainly in the areas of physician, outpatient surgery, and “supplemental benefits,” which include vision and dental care.
Consequently, the portion of premiums it paid
increased from a predicted 89.5% to 91.4% in the fourth quarter on medical care, which meant less to boost the bottom line.
In the meantime, the business reduced its 2024 projections for individual Medicare Advantage members to just 1.8%.
The result was that Humana’s market valuation dropped by several billion dollars as its stock fell 11% in early afternoon trading.
“The company’s profit outlook through 2024 may prove to be less favorable than initially projected,” Julie Utterback, an analyst at Morningstar, stated in a research note.
- The big picture: Seniors, in particular, are making up for elective procedures that were put off during the pandemic, according to insurers. UnitedHealth, a massive insurance company, announced a rise in utilization rates on Friday.
- What we’re observing: These patterns may result in increased insurance costs.
“Humana believes the emerging trends are impacting the industry broadly and anticipates the trends will be contemplated in the 2025 Medicare Advantage pricing cycle,” the business stated in a statement.
Post to Facebook (new window opens)
Post to Twitter (new window opens)
Post to LinkedIn (new window opens)
Send via email (new window opens)
READ MORE:
1. Health and Fitness Tips for You
2. Upcoming New Movies
3. Get New Jobs Directly From Companies FREE Visa
4.Latest News of Cryptocurrency and Bitcoin
5. Real Estate Business for you
6. Latest News
7. Best Insurance Policy for Everyone
READ MORE:
- 1. Strategic Management Process: Top5 Jobs In Dubai FREE VISA Apply Now
- 2. Vancouver Time fighting for $12,000 in travel insurance Nightmare FREE
- 3. DIABETIC DIET : A PROFESSIONAL’S GUIDE TO A WARM AND WELL-BEING
- 4. NICOLAS CAGE STATES : HE HAS 3 OR 4 MORE MOVIES LEFT NOW
- 5. EMPRESS CRACKS: FOR THE FIRST TIME SINCE APRIL
- 6. DESPITE MEANING: DESPITE HIGH RATES, MORE US HOME BUYERS ARE WILLING TO BUY
- 7. A 44-YEAR-OLD BOSTON WOMAN WAS KILLED BY A SHARK ATTACK IN THE BAHAMAS WHILE ON VACATION
