Humana reported losses related to its Affordable Care Act plans in the second quarter of 2016, but growth in the Louisville, Ky.-based insurer's Medicare Advantage membership provided a financial boost.
Humana said Medicare Advantage membership rose 4 percent year over year to 2.8 million in the second quarter. However, the insurer's commercial membership was down 24 percent year over year, mostly due to a decline in ACA plan membership.
"We are pleased that our year-to-date financial results are demonstrating consistently strong operational execution across our core business, though challenges in our individual commercial business remain," said Brian A. Kane, senior vice president and CFO of Humana.
Based on an evaluation of claims data received through June 2016, Humana increased its fiscal year 2016 premium deficiency reserve by approximately $208 million in the second quarter.
Humana said it expects to offer individual commercial plans, including ACA plans sold both off and on the exchanges, in no more than 156 counties in 11 states, down from its 2016 presence in 1,351 counties in 19 states.
Humana recorded revenue of $14.01 billion in the second quarter, up 2 percent from $13.73 billion in the same period of 2015. For the second quarter, Humana posted a profit of $636 million, down from $793 million in the same quarter of 2015.