Humana Stock Drops as Medicare Advantage Members Expected to Decline

Key Takeaways

Humana (

HUM

) shares slid after the health insurer said it expects Medicare Advantage memberships to decline in 2025.

The health insurer reported fourth-quarter revenue of $29.21 billion, up about 10% year-over-year and above the analyst consensus tracked by Visible Alpha. Humana posted an adjusted loss of $2.16 per share, wider than its loss of 11 cents per share a year earlier but better than analysts expected.

In 2025, Humana expects adjusted
earnings per share
of $16.25, up from $16.21 in 2024 but slightly below the analyst consensus. The company also said it expects individual
Medicare Advantage
members to decline roughly 10% from 2024. Last year, the Centers for Medicare & Medicaid Services
lowered the quality rating
of a Humana plan accounting for nearly half of its Medicare Advantage memberships to 3.5 stars from 4.5 stars.

Shares of Humana slid around 5% intraday Tuesday and are down about 30% over the past 12 months.

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