🔹 Adj EPS: ($2.16) (Est. -$2.13) 🔴
🔹 Revenue: $29.21B (Est. $28.72B) 🟢; UP +10% YoY
🔹 Adjusted Insurance Benefit Ratio: 91.9%
FY25 Guidance:
🔹 Adjusted EPS: $16.25 (Est. $16.91) 🔴
🔹 GAAP EPS: ~$15.88
Q4 Segment Performance:
Insurance Segment:
🔹 Adjusted Revenue: $28.16B; UP +14% YoY
🔹 Adjusted Benefit Ratio: 91.9% (UP +50 bps YoY)
Key Drivers:
🔸 Decline in individual Medicare Advantage membership due to exiting unprofitable plans and counties
🔸 Continued Medicaid and CenterWell strategy advancements
Other Key Metrics:
🔹 Operating Cost Ratio (Consolidated): 13.2% (UP +30 bps YoY)
🔹 Net Loss (GAAP): ($5.76) per share
Strategic Updates:
🔸 Humana plans a Medicare Advantage membership decline of ~10% in 2025 due to portfolio optimization and unprofitable plan exits.
🔸 Focused on advancing Medicaid and CenterWell strategies for long-term growth.
Management Commentary:
🔸 CEO Jim Rechtin:
"We are confident in our long-term strategy and anticipate 2025 to be a critical step in returning to compelling, normalized margins. Despite near-term challenges, our focus on operational excellence remains strong."