By Rob Curran


Humana's second-quarter earnings fell despite higher premium revenue and the health insurer cut its forecast for 2024 earnings growth, in the latest indication that insured Americans are opting for more discretionary medical procedures.

The company, which specializes in servicing government-backed programs, posted second-quarter net income of $679 million, or $5.62 a share, down from $959 million, or $7.66 a share, a year earlier.

Stripping out certain one-off items, Humana posted adjusted earnings of $6.96, beating the average Wall Street target of $5.86, as tallied by FactSet.

Revenue rose 10% to $29.54 billion, topping the average Wall Street target of $28.53 billion, as per FactSet.

During the quarter, Humana's benefits-to-expense ratio rose to 89% from 86.3% a year earlier, suggesting more enrollees availed of health-care services.

Humana cut its 2024 earnings projection to about $12.81 a share from a previous estimate of about $13.93 a share. Humana backed its prior target for adjusted earnings of approximately $16 a share.

Humana raised its forecast for 2024 individual Medicare Advantage annual membership growth to a 4.2% rate, anticipating 225,000 new members.

In April, the company withdrew its 2025 adjusted earnings projection of $6 to $10 a share, citing the Centers for Medicare and Medicaid Services' Medicare Advantage rate notice.


Write to Rob Curran at rob.curran@wsj.com


(END) Dow Jones Newswires

07-31-24 0722ET