Medical Certificate:1 Humana Issues A Warning Insurance

Radhika

Medical Certificate National Medical Commission Gamca Medical Status

Humana issues a warning about rising medical expenses as more patients use insurance.

Medical Certificate:1 Humana Issues A Warning Insurance

Medical CertificateNational Medical Commission Gamca Medical Status
Medical Certificate National Medical Commission Gamca Medical Status

 

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

Medical CertificateNational Medical Commission Gamca Medical Status
Medical Certificate National Medical Commission Gamca Medical Status

 

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.

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