Humana reported a 27 percent dip in 2021's profits year over year, prompting an initiative set to generate $1 billion in value through streamlined productivity and cost savings.
Eight things to know about Humana's Feb. 2 earnings report :
1. Humana reported $83.1 billion in revenue in 2021, up 7.7 percent from 2020.
2. The figure was anchored by a 10.5 percent increase in fourth quarter revenue, which totalled to $21.1 billion.
3. Despite revenue growth, Humana's annual income dropped to $3.4 billion, down 27.1 percent from 2020.
4. The payer recorded a quarterly loss of $60 million. It also posted a fourth quarter loss of $458 million in 2020.
5. Humana's benefits expense ratio was 86.7 percent for 2021, up from 2020's 83.1 percent.
6. Total enrollment increased 3.1 percent to 9.8 million people covered. Humana saw the most growth in state-based (up 21.7 percent) and individual Medicare Advantage (11.3 percent) markets. Group Medicare Advantage and Medicare stand-alone PDP enrollment dropped 8.6 percent and 6.7 percent respectively.
7. The payer outlined a mission to create $1 billion in value through 2022, with the goal of being positioned to further invest in Medicare Advantage and healthcare services markets in 2023.
8. The value creation plan includes a review of strategic initiatives, streamlining workforces, reducing third-party spending, shoring up real estate investments, and shifting toward digital processes.