Humana to Exit Additional Medicare Advantage Plans in 2027, Affecting 600,000 Members
Humana Inc. (HUM) announced plans to exit additional Medicare Advantage plans by 2027, impacting approximately 600,000 members as part of a strategy aimed at improving profitability and achieving a sustainable pre-tax margin of 3% by 2028. The insurer is focusing on exiting lower-return plans while preserving benefits in higher-performing ones. CFO Celeste Mellet emphasized that the move aligns with efforts to enhance clinical efficiency, adjust benefit structures, and maintain financial targets. Humana expects to retain over 40% of affected members through other offerings, mirroring its approach from 2025. The announcement follows a second-quarter earnings report where adjusted EPS beat estimates at $7.61 per share on revenue of $40.89 billion. However, the company revised down its GAAP earnings outlook for 2026 despite maintaining adjusted guidance and reporting strong Medicare Advantage membership growth.
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