Humana documented a net income of $195 million for the third quarter of 2025, down from $480 million during the same period last year, according to a Nov. 5 earnings release.
The company reported $32.65 billion in total revenue, an increase from $29.4 billion in third-quarter 2024.
Higher per-member premiums for Medicare and state-based contracts, along with membership growth across state-based contracts and standalone prescription drug plan businesses, drove the revenue boost. A direct subsidy provided by the Inflation Reduction Act bolstered Medicare premiums.
“These factors were partially offset by the membership decline within the individual Medicare Advantage business, inclusive of the company’s decision to exit certain unprofitable plans and counties,” the report added.
Operating expenses towered at $32.25 billion, up 11.75% year over year.
The insurer’s medical loss ratio reached 91.1% in the quarter, up from 89.9% during the same time in 2024.
Humana affirmed its adjusted, full-year earnings per share guidance at about $17.
The company still anticipates a drop in Medicare Advantage enrollment this year but now estimates only losing around 425,000 members versus a maximum of 500,000. Humana dropped its guidance earlier this year, as well.
“Our strategy of putting the consumer at the heart of everything we do is working, with solid year-to-date performance and strong momentum heading into the annual election period,” said Humana President and CEO Jim Rechtin. “We feel positive about the direction we’re headed and the value we are creating for our members, patients and investors.”
