HUM-HUMANA INC

Humana Shares Tumble as Company Projects Decline in Medicare Advantage Memberships and Lower-Than-Expected Earnings for 2025

Thursday

13 February, 2025

Humana's recent projections reveal a challenging landscape, with a significant drop in Medicare Advantage memberships and disappointing earnings forecasts for 2025. As the company navigates high costs and operational hurdles, can it regain investor confidence in such a competitive market?

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Key Takeaways
  • Humana is facing a projected 10% drop in Medicare Advantage memberships, leading to possible revenue declines.
  • The company reported a significant fourth-quarter loss of $862 million, raising financial stability concerns.
  • A downgrade in quality rating for a key offering points to operational challenges.
  • The stock has decreased by approximately 30% in the past year, reflecting waning investor confidence.
  • High costs affecting government-supported plans for seniors contribute to the overall risk of investing in Humana.

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