Humana lost $541 million in the fourth quarter of 2023, according to the company's year-end earnings report published Jan. 25.
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.