Humana reported a net income of $1.18 billion in the first quarter, down slightly from $1.24 billion during the same period last year, the company said April 29.
The insurer posted $39.6 billion in total revenue, up from $32.1 billion in the first quarter of 2025.
Membership growth across its Medicare businesses, higher per-member MA and standalone prescription drug plan premiums driven by an increase in MA benchmark funding from CMS, and an increased Part D direct subsidy under the Inflation Reduction Act drove the revenue increase.
The gains were partially offset by star ratings revenue headwinds affecting quality bonus payments from CMS. The share of Humana’s MA members enrolled in plans rated 4 stars or higher dropped to 25% for the 2025 rating year, down from 94% in 2024. In November, the company appealed a court ruling that upheld the lower ratings.
The insurer’s benefit ratio reached 89.4% in the quarter, up from 87% during the same period in 2025.
Humana affirmed its full-year 2026 individual MA membership growth guidance of approximately 25% over 2025, driven by new sales and improved retention. The company also affirmed its adjusted full-year EPS guidance of at least $9, while revising its GAAP EPS guidance to at least $8.36 from a prior estimate of at least $8.89.
The insurance segment posted $38.1 billion in revenue and $1.4 billion in income from operations, compared to $30.9 billion and $1.6 billion, respectively, in the first quarter of 2025.
CenterWell, Humana’s health services segment, reported $6.1 billion in revenue, up from $5.1 billion in the year-ago period. CenterWell’s income from operations fell to $289 million from $392 million. The segment’s operating cost ratio rose to 94.5% from 91.1%, driven in part by transaction and integration costs associated with the purchase of MaxHealth, which closed in February, and a previously disclosed headwind from the acquisition of The Villages Health, which closed in November.
CenterWell Senior Primary Care grew by 110,500 patients, or more than 22%, including 59,000 patients and 54 centers from MaxHealth. Total patients served across the primary care platform reached 601,600 as of March 31, up 44% year over year.
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