- Reports 3Q23 earnings per share (EPS) of $6.71 on a GAAP basis,
Adjusted EPS of $7.78; reports YTD 2023 EPS of $24.26 on a GAAP
basis, $26.10 on an Adjusted basis
- Reflects outperformance in the company's Medicaid and Primary
Care businesses along with a continued focus on driving sustainable
operating efficiencies, offset by modestly higher than anticipated
utilization in the Medicare Advantage business
- Revises FY 2023 EPS guidance to 'at least $26.31' on a GAAP
basis, affirms FY 2023 Adjusted EPS of 'at least $28.25'
- Raises 2023 individual Medicare Advantage membership growth by
35,000 to 'approximately 860,000', or 19 percent growth over FY
2022 ending membership, meaningfully higher than industry
growth
- Anticipates 2024 individual Medicare Advantage membership
growth at or above industry growth level
- Achieves 94 percent of the company's Medicare Advantage members
currently enrolled in 4-star and above contracts for 2024, an
industry-leader among its publicly traded peers for the sixth
consecutive year; 61 percent of members in 4.5 and 5-star
contracts
Humana Inc. (NYSE: HUM) today reported consolidated pretax
results and diluted earnings per share (EPS) for the quarter ended
September 30, 2023 (3Q23) versus the quarter ended September 30,
2022 (3Q22) and for the nine months ended September 30, 2023 (YTD
2023) versus the nine months ended September 30, 2022 (YTD 2022) as
noted in the tables below.
Consolidated income before income taxes
and equity in net earnings (pretax results) In millions
3Q23 (a)
3Q22 (a)
YTD 2023 (a)
YTD 2022 (a)
Generally Accepted Accounting
Principles (GAAP)
$1,098
$1,297
$3,974
$3,639
Amortization associated with identifiable
intangibles
17
25
51
61
Put/call valuation adjustments associated
with company's non-consolidating minority interest investments
35
13
141
(16
)
Transaction and integration costs
—
17
(47
)
70
Change in fair market value of
publicly-traded equity securities
—
(51
)
(1
)
119
Impact of exit of employer group
commercial medical products business
51
70
15
48
Accrued charge related to certain
anticipated litigation expenses
15
—
105
—
Value creation initiatives
52
82
52
285
Gain on sale of Gentiva (formerly Kindred)
Hospice
—
(240
)
—
(240
)
Adjusted (non-GAAP)
$1,268
$1,213
$4,290
$3,966
Diluted earnings per share
(EPS)
3Q23 (a)
3Q22 (b)
YTD 2023 (a)
YTD 2022 (a)
GAAP
$6.71
$9.39
$24.26
$22.16
Amortization associated with identifiable
intangibles
0.14
0.20
0.41
0.48
Put/call valuation adjustments associated
with company's non-consolidating minority interest investments
0.28
0.10
1.13
(0.13
)
Transaction and integration costs
—
0.13
(0.38
)
0.55
Change in fair market value of
publicly-traded equity securities
—
(0.40
)
(0.01
)
0.94
Impact of exit of employer group
commercial medical products business
0.42
0.55
0.12
0.37
Accrued charge related to certain
anticipated litigation expenses
0.12
—
0.84
—
Value creation initiatives
0.42
0.65
0.42
2.24
Net gain on the sale of Gentiva (formerly
Kindred) Hospice
—
(1.89
)
—
(1.89
)
Cumulative net tax impact of non-GAAP
adjustments
(0.31
)
(1.42
)
(0.69
)
(0.84
)
Adjusted (non-GAAP)
$7.78
$7.31
$26.10
$23.88
For comparative purposes, the 3Q22 and YTD
2022 reconciliations noted in the preceding tables have been recast
to exclude the impact of the exit of the employer group commercial
medical products business as announced by Humana on February 23,
2023. Additionally, 3Q22 and YTD 2022 per share impacts have been
recast to disclose the pretax per share impact of each adjustment,
followed by a cumulative net tax impact. Refer to the "Footnotes"
section included herein for further explanation on disclosures for
Adjusted (non-GAAP) financial measures, as well as additional
reconciliations.
“Our third quarter results reinforce Humana’s commitment to
delivering strong earnings growth, especially considering the 19
percent increase in our individual Medicare Advantage membership
which significantly outpaces the industry growth rate,” said Bruce
D. Broussard, Humana’s President and Chief Executive Officer. “Our
results can be partially attributed to our team’s continued focus
on advancing our CenterWell capabilities, driving durable
productivity, and prioritizing quality. Our industry-leading Star
Ratings for the sixth consecutive year, our strong Net Promoter
Scores, and our numerous awards for customer experience are a
testament to our commitment to the health, well-being, and
satisfaction of our customers and to our being a trusted brand
within the broker community. Our fundamentals are strong and we
remain committed to our 2025 Adjusted EPS target of $37, reflecting
a 14 percent compound annual growth rate from 2022 to 2025.”
Please refer to the tables above, as well as the consolidated
and segment highlight sections in the detailed earnings release for
additional discussion of the factors impacting the
year-over-comparisons.
In addition, a summary of key consolidated and segment
statistics comparing 3Q23 to 3Q22 and YTD 2023 to YTD 2022
follows.
Prior period segment financial information has been recast to
conform to Humana's recently revised segment presentation, as
disclosed as part of the company's fourth quarter 2022 earnings
release dated February 1, 2023. Additionally, 3Q22 and YTD 2022
Adjusted metrics have also been recast to exclude the impact of the
exit of the employer group commercial medical products business as
announced by Humana on February 23, 2023.
Humana Inc. Summary of Results ($
in millions, except per share amounts)
3Q23 (a)
3Q22 (a)
YTD 2023 (a)
YTD 2022 (a)
CONSOLIDATED
Revenues
$26,423
$22,799
$79,912
$70,431
Revenues - Adjusted (non-GAAP)
$25,526
$21,600
$76,911
$67,001
Pretax results
$1,098
$1,297
$3,974
$3,639
Pretax results - Adjusted (non-GAAP)
$1,268
$1,213
$4,290
$3,966
EPS
$6.71
$9.39
$24.26
$22.16
EPS - Adjusted (non-GAAP)
$7.78
$7.31
$26.10
$23.88
Benefits expense ratio
86.6%
85.6%
86.2%
86.0%
Benefits expense ratio - Adjusted
(non-GAAP)
86.4%
85.3%
86.1%
85.9%
Operating cost ratio
12.5%
13.5%
11.8%
13.0%
Operating cost ratio - Adjusted
(non-GAAP)
12.0%
12.8%
11.3%
12.2%
Operating cash flows
$11,115
$9,714
Operating cash flows - Adjusted (non-GAAP)
(b)
$4,042
$3,936
Parent company cash and short term
investments
$518
$1,183
Debt-to-total capitalization
41.1%
39.4%
Days in Claims Payable (DCP)
43.1
46.2
INSURANCE SEGMENT
Revenues
$25,511
$21,743
$77,289
$67,242
Revenues - Adjusted (non-GAAP)
$24,614
$20,595
$74,289
$63,693
Benefits expense ratio
87.6%
85.8%
86.8%
86.3%
Benefits expense ratio - Adjusted
(non-GAAP)
87.4%
85.5%
86.8%
86.2%
Operating cost ratio
10.4%
10.6%
9.9%
9.7%
Operating cost ratio - Adjusted
(non-GAAP)
9.9%
10.1%
9.4%
9.2%
Income from operations
$722
$873
$3,080
$2,976
Income from operations - Adjusted
(non-GAAP)
$794
$955
$3,217
$3,046
CENTERWELL SEGMENT
Revenues
$4,660
$4,274
$13,695
$13,166
Operating cost ratio
90.3%
92.0%
91.5%
91.2%
Income from operations
$400
$300
$1,017
$1,028
Income from operations - Adjusted
(non-GAAP) (c)
$453
$345
$1,169
$1,164
Refer to the "Footnotes" section included
herein for further explanation on disclosures for Adjusted
(non-GAAP) financial measures, as well as reconciliations.
2023 Earnings Guidance
Humana revised its GAAP EPS guidance for the year ending
December 31, 2023 (FY 2023) to 'at least $26.31' from 'at least
$26.91', while affirming its Adjusted EPS guidance of 'at least
$28.25'. The Adjusted EPS guidance reflects a $0.25 increase from
the initial guidance of 'at least $28.00', issued as part of the
company's fourth quarter 2022 earnings release.
Diluted earnings per common
share
FY 2023
Guidance (d)
FY 2022
GAAP
at least $26.31
$22.08
Amortization of identifiable
intangibles
0.53
0.64
Put/call valuation adjustments associated
with company's non-consolidating minority interest investments
1.13
0.53
Transaction and integration costs
(0.38
)
0.83
Change in fair market value of
publicly-traded equity securities
(0.01
)
0.97
Impact of exit of employer group
commercial medical products business
0.13
0.84
Accrued charge related to certain
anticipated litigation expenses
0.84
—
Value creation initiatives
0.42
3.72
Net gain on the sale of Gentiva (formerly
Kindred) Hospice
—
(1.86
)
Cumulative net tax impact of non-GAAP
adjustments
(0.72
)
(1.87
)
Adjusted (non-GAAP) – FY 2023
projected; FY 2022 reported
at least $28.25
$25.88
For comparative purposes, the FY 2022
reconciliation noted in the preceding table has been recast to
exclude the impact of the exit of the employer group commercial
medical products business as announced by Humana on February 23,
2023. Refer to the "Footnotes" section included herein for further
explanation on disclosures for Adjusted (non-GAAP) financial
measures, as well as additional reconciliations.
CMS Star Ratings
As previously disclosed, in October 2023, the Centers for
Medicare and Medicaid Services (CMS) published its updated Medicare
Star Ratings for bonus year 2025 (plan year 2024). Humana has
nearly 5.5 million members, or 94 percent of its existing Medicare
Advantage membership, currently enrolled in plans rated 4-stars or
above, with plans available in all 50 states and Puerto Rico. Four
of Humana's contracts received a 5-star rating, covering
approximately 790,000 members nationwide and more than doubling the
number of members in 5-star plans in 2023. This contributes to the
nearly 3.6 million, or 61 percent, of the company's Medicare
Advantage members in plans rated 4.5 stars or higher.
About 97.5 percent of retirees in Humana's group Medicare
Advantage rated plans remain in 4-star or above contracts for
2024.
Detailed Press Release
Humana’s full earnings press release, including the statistical
pages, has been posted to the company’s Investor Relations site and
may be accessed at https://humana.gcs-web.com/ or via a current
report on Form 8-K filed by the company with the Securities and
Exchange Commission this morning (available at www.sec.gov or on
the company’s website).
Conference Call
Humana will host a conference call at 9:00 a.m. Eastern time
today to discuss its financial results for the quarter and the
company’s expectations for future earnings.
To participate via phone, please register in advance at this
link -
https://register.vevent.com/register/BId758ed43d68741ac92865ada642803d4
.
Upon registration, telephone participants will receive a
confirmation email detailing how to join the conference call,
including the dial-in number and a unique registrant ID that can be
used to access the call. A webcast of the 3Q23 earnings call may
also be accessed via Humana’s Investor Relations page at
humana.com. The company suggests participants for both the
conference call and those listening via the web dial in or sign on
at least 15 minutes in advance of the call.
For those unable to participate in the live event, the archive
will be available in the Historical Webcasts and Presentations
section of the Investor Relations page at humana.com, approximately
two hours following the live webcast.
Footnotes
The company has included financial measures throughout this
earnings release that are not in accordance with GAAP. Management
believes that these measures, when presented in conjunction with
the corresponding GAAP measures, provide a comprehensive
perspective to more accurately compare and analyze the company’s
core operating performance over time. Consequently, management uses
these non-GAAP (Adjusted) financial measures as consistent and
uniform indicators of the company’s core business operations from
period to period, as well as for planning and decision-making
purposes and in determination of incentive compensation. Non-GAAP
(Adjusted) financial measures should be considered in addition to,
but not as a substitute for, or superior to, financial measures
prepared in accordance with GAAP. All financial measures in this
earnings release are in accordance with GAAP unless otherwise
indicated. Please refer to the footnotes for a detailed description
of each item adjusted out of GAAP financial measures to arrive at
non-GAAP (Adjusted) financial measures.
(a) For the periods covered in this earnings press release, the
following items are excluded from the non-GAAP financial measures
described above, as applicable:
- Amortization associated with identifiable intangibles -
Since amortization varies based on the size and timing of
acquisition activity, management believes this exclusion provides a
more consistent and uniform indicator of performance from period to
period. For all periods shown within this earnings release, GAAP
measures affected include consolidated pretax results, EPS, and
Insurance and CenterWell segments income from operations. The table
below discloses respective period amortization expense for each
segment.
3Q23
3Q22
YTD 2023
YTD 2022
Insurance segment
$6
$12
$17
$22
CenterWell segment
$11
$13
$34
$39
- Put/call valuation adjustments associated with company’s
non-consolidating minority interest investments - These amounts
are the result of fair value measurements associated with our
Primary Care Organization strategic partnership and are unrelated
to the company's core business operations. For all periods shown
within this earnings release, GAAP measures affected include
consolidated pretax results and EPS.
- Transaction and integration costs - The transaction and
integration costs primarily relate to the acquisition of Kindred at
Home in 2021 and the subsequent divestiture of Gentiva (formerly
Kindred) Hospice in 2022. For YTD 2023, 3Q22, and YTD 2022, GAAP
measures affected include consolidated pretax results, EPS, and the
consolidated operating cost ratio.
- Impact of exit of employer group commercial medical products
business - Prior period segment financial information has been
recast to exclude the impact of the exit of the employer group
commercial medical products business as announced by Humana on
February 23, 2023. For all periods shown within this earnings
release, GAAP measures affected include consolidated pretax
results, EPS, consolidated revenues, consolidated benefit expense
ratio, consolidated operating cost ratio, Insurance segment
revenues, Insurance segment benefit expense ratio, Insurance
segment operating cost ratio, and Insurance segment income from
operations.
- Accrued charge related to certain anticipated litigation
expenses - This charge relates to certain anticipated expenses
the company has accrued in connection with a legal matter. For 3Q23
and YTD 2023, GAAP measures affected include consolidated
pretax results, EPS, the consolidated and Insurance segment
operating cost ratios, and Insurance segment income from
operations.
- Change in fair value of publicly-traded equity securities
- These gains and losses are a result of market and economic
conditions that are unrelated to the company's core business
operations. For YTD 2023, 3Q22, and YTD 2022, GAAP measures
affected include consolidated pretax results and EPS.
- Value creation initiatives - These charges relate to the
company's ongoing initiative to drive additional value for the
enterprise through cost saving, productivity initiatives, and value
creation from previous investments, and primarily consist of asset
impairment and severance charges. For all periods shown in this
earnings release, GAAP measures affected in this release include
consolidated pretax results, EPS, and the consolidated operating
cost ratio.
- Gain on sale of Gentiva (formerly Kindred) Hospice -
This gain related to the sale of the company's 60 percent ownership
of Gentiva Hospice. For 3Q22 and YTD 3Q22, GAAP measures affected
include consolidated pretax results and EPS.
- Cumulative net tax impact of non-GAAP adjustments - This
adjustment represents the cumulative net impact of the
corresponding tax benefit or expense related to the aforementioned
items excluded from the applicable GAAP measures. For all periods
presented in this earnings release, EPS is the sole GAAP measure
affected.
In addition to the reconciliations shown on page 2 of this
release, the following are reconciliations of GAAP to Adjusted
(non-GAAP) measures described above and disclosed within this
earnings release:
Revenues
Revenues - CONSOLIDATED
(in millions)
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
$26,423
$22,799
$79,912
$70,431
Change in fair market value of
publicly-traded equity securities
—
(51
)
(1
)
119
Impact of exit of employer group
commercial medical products business
(897
)
(1,148
)
(3,000
)
(3,549
)
Adjusted (non-GAAP)
$25,526
$21,600
$76,911
$67,001
Revenues - INSURANCE SEGMENT
(in millions)
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
$25,511
$21,743
$77,289
$67,242
Impact of exit of employer group
commercial medical products business
(897
)
(1,148
)
(3,000
)
(3,549
)
Adjusted (non-GAAP)
$24,614
$20,595
$74,289
$63,693
Benefit Expense Ratio
Benefit expense ratio -
CONSOLIDATED
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
86.6
%
85.6
%
86.2
%
86.0
%
Impact of exit of employer group
commercial medical products business
(0.2
)%
(0.3
)%
(0.1
)%
(0.1
)%
Adjusted (non-GAAP)
86.4
%
85.3
%
86.1
%
85.9
%
Benefit expense ratio - INSURANCE
SEGMENT
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
87.6
%
85.8
%
86.8
%
86.3
%
Impact of exit of employer group
commercial medical products business
(0.2
)%
(0.3
)%
—
%
(0.1
)%
Adjusted (non-GAAP)
87.4
%
85.5
%
86.8
%
86.2
%
Operating Cost Ratio
Operating cost ratio -
CONSOLIDATED
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
12.5
%
13.5
%
11.8
%
13.0
%
Transaction and integration costs
—
%
—
%
—
%
(0.1
)%
Impact of exit of employer group
commercial medical products business
(0.3
)%
(0.3
)%
(0.3
)%
(0.3
)%
Accrued charge related to certain
anticipated litigation expenses
—
%
—
%
(0.1
)%
—
%
Value creation initiatives
(0.2
)%
(0.4
)%
(0.1
)%
(0.4
)%
Adjusted (non-GAAP)
12.0
%
12.8
%
11.3
%
12.2
%
Operating cost ratio - INSURANCE
SEGMENT
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
10.4
%
10.6
%
9.9
%
9.7
%
Impact of exit of employer group
commercial medical products business
(0.4
)%
(0.5
)%
(0.4
)%
(0.5
)%
Accrued charge related to certain
anticipated litigation expenses
(0.1
)%
—
%
(0.1
)%
—
%
Adjusted (non-GAAP)
9.9
%
10.1
%
9.4
%
9.2
%
Insurance Segment Income from
Operations
Income from operations - INSURANCE
SEGMENT
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
$722
$873
$3,080
$2,976
Amortization associated with identifiable
intangibles
6
12
17
22
Impact of exit of employer group
commercial medical products business
51
70
15
48
Accrued charge related to certain
anticipated litigation expenses
15
—
105
—
Adjusted (non-GAAP)
$794
$955
$3,217
$3,046
(b) Generally, when the first day of a month falls on a weekend
or holiday, with the exception of January 1 (New Year's Day), the
company receives its monthly Medicare premium payment from CMS on
the last business day of the previous month. On a GAAP basis, this
can result in certain quarterly cash flows from operations
including more or less than three monthly payments. Consequently,
when this occurs, the company reports Adjusted cash flows from
operations to reflect three payments in each quarter to match the
related expenses.
Net cash from operating
activities
(in millions)
YTD 2023
YTD 2022
GAAP
$11,115
$9,714
Timing of premium payment from CMS
(7,073
)
(5,778
)
Adjusted (non-GAAP)
$4,042
$3,936
(c) The CenterWell segment Adjusted income from operations
includes an adjustment to add back depreciation and amortization
expense to the segment's GAAP income from operations since such an
adjustment is commonly utilized for valuation purposes within the
healthcare delivery industry. Prior year presentation has been
recast to conform to current year presentation.
Income from operations - CENTERWELL
SEGMENT
(in millions)
3Q23
3Q22
YTD 2023
YTD 2022
GAAP
$400
$300
$1,017
$1,028
Depreciation and amortization expense
53
45
152
136
Adjusted (non-GAAP)
$453
$345
$1,169
$1,164
(d) FY 2023 projected Adjusted results
exclude the following:
- FY 2023 GAAP EPS excludes the YTD 2023 impact of fair value
changes of the put/call options associated with Humana's
non-consolidating minority interest investments as future value
changes can not be estimated.
- The fair value of publicly-traded securities, their impact on
GAAP EPS, and the related non-GAAP adjustment will fluctuate
depending on the public trading value of the stock. The guidance
set forth herein assumes no further change in the fair value of
those investments, other than the YTD 2023 adjustment.
- Transaction and integration costs, the accrual related to
certain anticipated litigation expenses, and value creation
initiatives reflect the respective impact of YTD 2023
activity.
Cautionary Statement
This news release includes forward-looking statements regarding
Humana within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in investor presentations, press
releases, Securities and Exchange Commission (SEC) filings, and in
oral statements made by or with the approval of one of Humana’s
executive officers, the words or phrases like “expects,”
“believes,” “anticipates,” “intends,” “likely will result,”
“estimates,” “projects” or variations of such words and similar
expressions are intended to identify such forward-looking
statements.
These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties, and
assumptions, including, among other things, information set forth
in the “Risk Factors” section of the company’s SEC filings, a
summary of which includes but is not limited to the following:
- If Humana does not design and price its products properly and
competitively, if the premiums Humana receives are insufficient to
cover the cost of healthcare services delivered to its members, if
the company is unable to implement clinical initiatives to provide
a better healthcare experience for its members, lower costs and
appropriately document the risk profile of its members, or if its
estimates of benefits expense are inadequate, Humana’s
profitability could be materially adversely affected. Humana
estimates the costs of its benefit expense payments, and designs
and prices its products accordingly, using actuarial methods and
assumptions based upon, among other relevant factors, claim payment
patterns, medical cost inflation, and historical developments such
as claim inventory levels and claim receipt patterns. The company
continually reviews estimates of future payments relating to
benefit expenses for services incurred in the current and prior
periods and makes necessary adjustments to its reserves, including
premium deficiency reserves, where appropriate. These estimates
involve extensive judgment, and have considerable inherent
variability because they are extremely sensitive to changes in
claim payment patterns and medical cost trends. Accordingly,
Humana's reserves may be insufficient.
- If Humana fails to effectively implement its operational and
strategic initiatives, including its Medicare initiatives, which
are of particular importance given the concentration of the
company's revenues in these products, state-based contract
strategy, the growth of its CenterWell business, and its integrated
care delivery model, the company’s business may be materially
adversely affected. In addition, there can be no assurances that
the company will be successful in maintaining or improving its Star
ratings in future years.
- If Humana fails to properly maintain the integrity of its data,
to strategically maintain existing or implement new information
systems, to protect Humana’s proprietary rights to its systems, or
to defend against cyber-security attacks or prevent other privacy
or data security incidents that result in security breaches that
disrupt the company's operations or in the unintentional
dissemination of sensitive personal information or proprietary or
confidential information, the company’s business may be materially
adversely affected.
- Humana is involved in various legal actions, or disputes that
could lead to legal actions (such as, among other things, provider
contract disputes and qui tam litigation brought by individuals on
behalf of the government), governmental and internal
investigations, and routine internal review of business processes
any of which, if resolved unfavorably to the company, could result
in substantial monetary damages or changes in its business
practices. Increased litigation and negative publicity could also
increase the company’s cost of doing business.
- As a government contractor, Humana is exposed to risks that may
materially adversely affect its business or its willingness or
ability to participate in government healthcare programs including,
among other things, loss of material government contracts;
governmental audits and investigations; potential inadequacy of
government determined payment rates; potential restrictions on
profitability, including by comparison of profitability of the
company’s Medicare Advantage business to non-Medicare Advantage
business; or other changes in the governmental programs in which
Humana participates. Changes to the risk-adjustment model utilized
by CMS to adjust premiums paid to Medicare Advantage plans or
retrospective recovery by CMS of previously paid premiums as a
result of the final rule related to the risk adjustment data
validation audit methodology published by CMS on January 30, 2023
(Final RADV Rule), which Humana believes fails to address
adequately the statutory requirement of actuarial equivalence and
violates the Administrative Procedure Act due to its failure to
include a "Fee for Service Adjuster" could have a material adverse
effect on the company's operating results, financial position and
cash flows.
- Humana's business activities are subject to substantial
government regulation. New laws or regulations, or legislative,
judicial, or regulatory changes in existing laws or regulations or
their manner of application could increase the company's cost of
doing business and have a material adverse effect on Humana’s
results of operations (including restricting revenue, enrollment
and premium growth in certain products and market segments,
restricting the company’s ability to expand into new markets,
increasing the company’s medical and operating costs by, among
other things, requiring a minimum benefit ratio on insured
products, lowering the company’s Medicare payment rates and
increasing the company’s expenses associated with a non-deductible
health insurance industry fee and other assessments); the company’s
financial position (including the company’s ability to maintain the
value of its goodwill); and the company’s cash flows.
- Humana’s failure to manage acquisitions, divestitures and other
significant transactions successfully may have a material adverse
effect on the company’s results of operations, financial position,
and cash flows.
- If Humana fails to develop and maintain satisfactory
relationships with the providers of care to its members, the
company’s business may be adversely affected.
- Humana faces significant competition in attracting and
retaining talented employees. Further, managing succession for, and
retention of, key executives is critical to the Company’s success,
and its failure to do so could adversely affect the Company’s
businesses, operating results and/or future performance.
- Humana’s pharmacy business is highly competitive and subjects
it to regulations and supply chain risks in addition to those the
company faces with its core health benefits businesses.
- Changes in the prescription drug industry pricing benchmarks
may adversely affect Humana’s financial performance.
- Humana’s ability to obtain funds from certain of its licensed
subsidiaries is restricted by state insurance regulations.
- Downgrades in Humana’s debt ratings, should they occur, may
adversely affect its business, results of operations, and financial
condition.
- The securities and credit markets may experience volatility and
disruption, which may adversely affect Humana’s business.
- The spread of, and response to, the novel coronavirus, or
COVID-19, underscores certain risks Humana faces, including those
discussed above, and the ongoing, heightened uncertainty created by
the pandemic precludes any prediction as to the ultimate adverse
impact to Humana of COVID-19.
In making forward-looking statements, Humana is not undertaking
to address or update them in future filings or communications
regarding its business or results. In light of these risks,
uncertainties, and assumptions, the forward-looking events
discussed herein may or may not occur. There also may be other
risks that the company is unable to predict at this time. Any of
these risks and uncertainties may cause actual results to differ
materially from the results discussed in the forward-looking
statements.
Humana advises investors to read the following documents as
filed by the company with the SEC for further discussion both of
the risks it faces and its historical performance:
- Form 10-K for the year ended December 31, 2022;
- Form 10-Q for the quarters ended March 31, 2023 and June 30,
2023; and
- Form 8-Ks filed during 2023.
About Humana
Humana Inc. is committed to putting health first – for our
teammates, our customers, and our company. Through our Humana
insurance services, and our CenterWell health care services, we
make it easier for the millions of people we serve to achieve their
best health – delivering the care and service they need, when they
need it. These efforts are leading to a better quality of life for
people with Medicare, Medicaid, families, individuals, military
service personnel, and communities at large. Learn more about what
we offer at Humana.com and at CenterWell.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101432734/en/
Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail:
LStamper@humana.com
Mark Taylor Humana Corporate Communications (317) 753-0345
e-mail: MTaylor108@humana.com
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