Humana reported a net income of $545 million in the second quarter, down from a net income of $679 million during the same period last year, according to its July 30 financial report.
The company posted total revenues of $32.9 billion for the three months ended June 30, up from $29.5 billion during the same period last year.
Total operating expenses were $31.3 billion in the quarter, up from $28.4 billion during the same period last year.
The payer’s medical loss ratio was 89.7% in the quarter, roughly on par with 89% during the same quarter last year. Humana said the medical loss ratio was in line with its previously disclosed expectation of “approximately 90%.”
Humana updated its fiscal 2025 guidance, now estimating full-year earnings per share of $17, up from its previous estimate of $16.25. The payer is now estimating full-year revenue of at least $128 billion, up from its previous guidance range of $126 billion to $128 billion.
The company also revised its individual Medicare Advantage membership guidance. Humana is now anticipating a decline of up to 500,000 members, down from its previous guidance of approximately 550,000.
The expected MA membership decline is “inclusive of the impact of exiting certain unprofitable plans and counties.” Humana said it remains confident in its 2025 pricing strategy as it “prioritizes benefit structure that is expected to drive sustainable, long-term value creation.”
“We feel good about our solid performance in the first half of the year,” Humana President and CEO Jim Rechtin said in the release. “It reinforces our strategy to continue investing in improved outcomes, operational excellence and a better experience for our customers and investors.”
