Company Reports

After several years of elevated utilization that has not been fully offset by rate increases yet, covered MCO shares have risen about 35% on average since our last managed care industry report in September 2025, in anticipation of rising profits in at-risk medical insurance plans.

Humana's second-quarter results included 26% revenue growth and 22% adjusted earnings per share growth to $7.61, above FactSet consensus of $7.26. The company merely affirmed its 2026 outlook, though, and shares fell in early July 29 trading on this news.

Humana remains a top-tier medical insurer, paying US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

Humana's first-quarter results included 22% membership growth in individual Medicare Advantage, 23% revenue growth, and an 11% adjusted earnings per share decline to $10.31. The last was above 2026 guidance for at least $9, which management merely maintained.

After hours on April 6, the Centers for Medicare & Medicaid Services released its final rate notice for the 2027 Medicare Advantage program, which included a 2.5% overall increase, compared with a flat initial rate notice in late January.

Humana reported fourth-quarter results that allowed it to roughly meet expectations for 2025 earnings of at least $17 per share. Also, Humana projected adjusted EPS of only $9 for 2026, reflecting lower Medicare Advantage bonuses, a significant surge in MA membership, and lower margins.

Humana remains a top-tier medical insurer, paying US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

After hours on Jan. 26, the Centers for Medicare & Medicaid Services released its initial rate notice for the 2027 Medicare Advantage program, which included a flat overall rate increase rather than the 5% increase in 2026. Most of that differential is related to new risk assessment-related changes.

On Nov. 9, the US Senate agreed to terms that would reopen the US federal government after a record shutdown period. However, the solution did not include a plan to extend federal subsidies on the individual exchanges.

Humana turned in third-quarter results, including $3.24 of adjusted EPS, or above FactSet consensus of $2.93. Year to date, the firm has produced over $21 of adjusted EPS, or well above its maintained 2025 guidance of at least $17. However, shares traded down about 10% in early trading on Nov. 5.

After a strong first quarter, Humana turned in 10% revenue growth and a 10% adjusted EPS decline in the second quarter. However, year to date, Humana has already delivered $17.85 of adjusted EPS, exceeding its newly raised guidance of about $17 per share. Shares rose about 6% in early trading.

Humana remains a top-tier medical insurer, paying US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

Humana held its analyst day on June 16, 2025, in which it highlighted its near- and long-term earnings potential. Shares were treading water in after-hours trading following that event.

Humana remains a top-tier medical insurer, paying US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

On May 21, the Centers for Medicare and Medicaid Services announced plans to increase regulation of the Medicare Advantage market to curb overpayments to private insurers like Humana.

Humana remains a top-tier medical insurer, paying US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

On May 11 and 12, Republicans revealed updated regulatory stances that included plans to lower drug prices and pull back on Medicaid spending by about $715 billion over the next 10 years versus $880 billion expected previously.

Humana delivered 60% adjusted EPS growth in the quarter and maintained its 2025 outlook. On an adjusted operating profit basis, medical insurance grew 75%, including a better medical loss ratio of 87.4% versus 89.4% a year ago, while its provider and PBM unit grew 35%.

Over the past week, tariff-related news has created significant volatility in the US market, including in medical services-related firms like managed care organizations, caregivers, and medical suppliers.

Late on April 7, the Centers for Medicare and Medicaid Services released its final reimbursement rate notice for Medicare Advantage, highlighting an expected change in per capita revenue of 5.06% in 2026 even after risk-related adjustments. This is up from 2.23% in the January initial rate notice.