Humana’s stock dipped following the earnings report, prompting the organization to cut its earnings guidance for this year and next.
January 26, 2024 – Jeff Lagasse, Associate Editor – Despite logging $26.6 billion in revenue for the fourth quarter of 2023, insurer Humana posted a $541 million overall loss, pinning much of the blame on a higher-than-anticipated increase in Medicare Advantage costs.
In a prepared statement on its financial performance, Humana said it was “disappointed with the impact of the late and unexpected development of higher trends on our 2023 results and 2024 outlook.”
The Wall Street Journal reported that Humana’s stock dipped 11% following the earnings report, prompting the organization to cut its earnings guidance for this year and next due to the increase in spending.
Officials said the cost increases were largely driven by climbing inpatient costs and more spending on outpatient surgeries and supplemental benefits. Inpatient short-stays increased during Q4 while observation stays decreased.
Comparing year-over-year performance, Humana reported $22.4 billion in revenue and a $15 million loss in Q4 2022.
