Humana reports Medicare Advantage growth, income gains in Q1 2024
Full-year consolidated revenues are expected to be $113 billion and individual Medicare Advantage membership is projected to grow by 150,000.
Source: Humana logo
- Humana added 50,000 individual Medicare Advantage beneficiaries and reported a net income of $741 million in the first quarter of 2024.
The payer reported earnings per share (EPS) of $6.11 for quarter one on a generally accepted accounting principles (GAAP) basis, or $741 million, and adjusted EPS of $7.23. In the first quarter of 2023, the payer’s net income was $1.2 billion, or $9.87 EPS. Consolidated GAAP pre-tax income was around $1 billion in the first quarter of the year, down from $1.6 billion in 2023.
Total revenues were $29.6 billion and adjusted non-GAAP revenues were $29.3 billion, both figures up from quarter one of 2023. The operating cost ratio was 10.4 percent in the first quarter of the year, and operating cash flows were $423 million.
Humana’s insurance segment reported revenues of $28.6 billion and adjusted revenues of $28.4 billion. The operating cost ratio was 8.4 percent, with income from operations totaling $898 million. The payer’s CenterWell segment reported $4.8 billion in revenues, a 93.0 percent operating cost ratio, and $282 million in income from operations.
Humana projects that GAAP EPS for the full year will be $13.93; previously, the payer had estimated it would be $14.87. Consolidated revenues are estimated to be $113 billion for 2024, insurance segment revenues are projected to be $110 billion, and CenterWell segment revenues are projected to be $19 billion.
Consolidated and insurance segment revenue growth in quarter one was driven by higher per member Medicare premiums and individual and group Medicare Advantage membership growth.
Individual Medicare Advantage annual membership grew by 50,000 beneficiaries. For the whole year, Humana expects individual membership to increase by 150,000, group Medicare Advantage membership to grow by 45,000, Medicare standalone prescription drug plan membership to grow by 650,000, and state-based contracts to increase by 250,000 members.
Humana’s earnings report also noted that the payer has continued to expand its Medicaid footprint with recent contracts in Florida, Texas, and Virginia.
