Humana beats profit estimates on less-than-feared demand for surgeries By Reuters

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<span>© Reuters. FILE PHOTO: Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly/File Photo</span><br />
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<p>(Reuters) -Humana’s second-quarter profit beat Wall Street estimates on Wednesday, as a lower-than-expected spike in non-urgent surgeries helped keep a check on the health insurer’s medical costs, sending shares 4% higher in premarket trade.</p>
<p>Insurers have reported better-than-expected medical costs despite warnings from Humana (NYSE:) and UnitedHealth (NYSE:) – the two biggest providers of Medicare Advantage plans for people aged 65 and above – in June that an increase in non-urgent surgeries was driving up claims. </p>
<p>On Wednesday, Humana said claims were showing signs of stabilization.</p>
<p>Humana reported a medical loss ratio – the percentage of premiums it spends on medical care – of 86.3% for the quarter, versus the average analysts’ estimate of 86.5%, according to Refinitiv data.</p>
<p>The company had said in June it expected the business’ second-quarter MLR to be “biased towards the top half” of its full-year range of 86.3% to 87.3%.</p>
<p>Shares of Humana have slumped over 10% since UnitedHealth, and then the insurer itself, warned in June costs, especially those with Medicare plans, would surge this year.</p>
<p>Humana also raised its 2023 individual Medicare Advantage membership growth by 50,000 to about 825,000 new members.</p>
<p>Excluding one-off items, the health insurer earned a profit of $8.94 per share in the quarter ended June 30, higher than analysts’ average estimate of $8.82 per share, according to Refinitiv data.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/humana-beats-profit-estimates-on-lowerthanexpected-medical-costs-3141611">Source link </a></p><p>The post <a href="https://forextraderhub.com/humana-beats-profit-estimates-on-less-than-feared-demand-for-surgeries-by-reuters.html">Humana beats profit estimates on less-than-feared demand for surgeries By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>