The results reflect “additional increase in Medicare Advantage medical cost trends, driven by higher than anticipated inpatient utilization, primarily for the months of November and December, and a further increase in non-inpatient trends,” the company said.
Total revenues in the fourth quarter were $26.4 billion, up 17.9% year over year. In 2023, total revenues were $106.4 billion, up 14.5%.
Humana posted a net loss of $541 million in the fourth quarter, compared to a $15 million net loss the year prior. In 2023, the company’s net income totaled nearly $2.5 billion, down 11.3%.
Humana reported a medical loss ratio of 91.4% in the fourth quarter, compared to the 89.5% it predicted. The company’s full-year medical loss ratio in 2023 was 88%, higher than the 87.5% the company predicted. As of Dec. 31, days claims payable was 41.4.
Humana’s total medical membership in the fourth quarter reached nearly 16.9 million, down 1.3% year over year. Its Medicare Advantage membership grew 15.4 percent year over year, reaching 5.9 million.
Humana affirmed its 2024 individual Medicare Advantage membership growth expectations of 100,000 annually, or a 1.8% growth rate. The company’s 2024 adjusted earnings per share guidance is $16.
