Humana took in $930 million in net income during the first quarter and aims to continue adding Medicare Advantage members, according to its earnings report released April 27.
"We are pleased with our strong start to the year, with all our business lines performing well," President and CEO Bruce Broussard said. "Our updated full year adjusted earnings per share guidance of 'approximately $24.50' represents 19 percent growth over our actual 2021 results."
Seven key takeaways:
- Revenue in the first quarter was nearly $24 billion compared to nearly $20.7 billion in 2021, a 16 percent increase.
- Operating expenses totaled $22.7 billion in 2022 compared to $19.4 billion year over year, a nearly 17 percent increase.
- Net income grew 12 percent in 2022 compared to the same period in 2021, growing to $930 million from $828 million.
- Consolidated revenues were led by individual Medicare Advantage and state-based contracts membership growth, higher per-member individual Medicare Advantage premiums, and Kindred at Home revenues from external customers.
- Consolidated revenues were offset by declining year-over-year membership associated with the company's group commercial medical products and lower investment income in the first quarter as a result of fair value adjustments to the company's publicly traded equity securities.
- Total membership surpassed 10 million in the first quarter. The payer added 354,900 members since Dec. 31, an increase of 3.7 percent from the fourth quarter of 2021.
- The payer said it is making progress on its plan to grow and retain Medicare Advantage membership in 2023, and its $1 billion value creation initiative aims to enhance Medicare offerings and expand healthcare services.