Bruce Japsen Senior Contributor Nov 3, 2020,09:51am EST
Humana profits nearly doubled in the third quarter with health
plan enrollees still not seeking medical treatment during the Covid-19 pandemic
quite like they have in the past.
Health insurers including Humana have seen profits rise
dramatically this year as elective procedures these health plans pay for are
postponed or delayed amid the spread of Covid-19. And that continued in
Humana’s third quarter though medical expenses were starting to return to
normal.
Humana, which is one of the nation’s biggest providers of health
benefits to seniors through its Medicare Advantage plans, said “utilization
continued to rebound throughout the quarter, reaching approximately 95% of
historic baseline levels at the close of the third quarter,” Humana said in its
third quarter earnings report released Tuesday.
Humana said seniors in its Medicare plans in particular aren’t
seeking medical treatment and outpatient care like those in other plans.
“Utilization resumed at a faster pace for fully-insured group commercial
medical members in the group and specialty segment, compared to a more gradual
return for senior and Medicaid members in the retail segment,” Humana added.
Humana said profits nearly doubled to $1.76 billion, of $10.05 a
share, in the third quarter from $888 million, or $5.14 per share in the year
ago period. Revenue soared nearly 24% to $20 billion compared to $16.2 billion
in the third quarter of last year.
Looking ahead, Humana increased its 2020 financial outlook and
projected growth in its Medicare Advantage membership to 375,000 from a
pervious range of 330,000 to 360,000. “We continue to see more Medicare
beneficiaries choosing Medicare Advantage (MA) plans over Medicare-Fee-For-Service due to MA’s ever-increasing value
proposition,” Humana chief executive Bruce Broussard said.
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