Humana reported $1.2 billion in profits during the third quarter and is expecting major increases in Medicare Advantage membership, according to the company's Nov. 2 earnings report.
The company reported $22.8 billion in third quarter revenues, increasing 10.2 percent from $20.7 billion year over year. Total revenues in 2022 are $70.4 billion
The company expects an annual adjusted EPS guidance of $25 and raised its 2022 earnings outlook to $91.6 billion - $93.2 billion.
Operating expenses were $21.6 billion in the third quarter, rising 7.8 percent from 20.1 billion year over year.
The company's profits were just under $1.2 billion in the third quarter, decreasing from $1.5 billion during the same period last year. Total income in 2022 is $2.8 billion.
Total medical membership is 17.1 million people. The company has 8.7 million total Medicare members, including 5.1 million Medicare Advantage members.
"We are pleased with our third quarter results and the strong performance across all of our businesses," President and CEO Bruce Broussard said. "Humana is well positioned for the 2023 Medicare Advantage Annual Election Period, with plans designed to meet customers' affordability and healthcare needs, especially important given the current economic conditions and knowing many seniors are on fixed incomes."
The payer has invested heavily in regaining Medicare Advantage market share it lost over the last year. The company said 96 percent of its MA members are enrolled in 4-star and above plans for 2023, with 66 percent enrolled in 4.5 and 5-star plans. In 2023, MA enrollment is expected to grow by 325,000-400,000 members.