Humana reported a 30% decline in net income year over year in the third quarter of 2023.
The company reported $832 million in net income in the third quarter in its earnings report published Nov. 1, down from $1.2 billion in the same time period in 2022.
Total revenue in the third quarter was $26.4 billion, up 16% year over year.
The results reflect "modestly higher than anticipated" utilization in the company's Medicare Advantage business, and outperformance in its Medicaid and primary care business, the company said in a Nov. 1 news release.
Humana's medical loss ratio in its insurance segment was 87.6%, up from 85.8% in the third quarter of 2022.
The company affirmed its year-end adjusted earnings guidance to at least $28.25 per share.
Humana's total medical membership in the third quarter was 17 million, down 0.8% year over year. Its Medicare Advantage membership grew 14.7 percent year over year, reaching 5.9 million. Commercial membership declined by 31.5% year over year. Humana is in the process of discontinuing its commercial offerings.
Humana raised its 2023 individual Medicare Advantage membership growth expectations by 35,000, predicting to add around 860,000 members in 2023, 19 percent more than in 2022.