A Humana workplace in Louisville, Kentucky, July 31, 2023.
Jon Cherry | Bloomberg | Getty Photographs
Humana shares rose Wednesday after the well being insurer mentioned medical prices got here in decrease than anticipated throughout its second-quarter earnings report.
The outcomes ease investor considerations two months after Humana and rival UnitedHealth Group warned {that a} surge in demand for nonurgent surgical procedures and outpatient providers amongst seniors was driving up claims.
Each firms — the 2 greatest suppliers of Medicare Benefit plans for folks ages 65 and above — have now urged the uptick could also be abating.
Humana reported a medical loss ratio, the proportion of premiums it spends on medical care, of 86.3% for the second quarter. Analysts had estimated that ratio could be 86.5%, in line with Refinitiv information.
Humana highlighted a “stabilizing Medicare Benefit utilization atmosphere” based mostly on the newest claims exercise, with out elaborating.
The corporate mentioned in June it anticipated its second-quarter medical loss ratio to be towards the highest vary of its full-year outlook of 86.3% to 87.3%. Humana reiterated that full-year steerage Wednesday.
Humana’s inventory rose 5% in morning buying and selling Wednesday. Shares are down about 5% for the yr after the broader health-care sector took a beating in June, placing the corporate’s market worth at round $60 billion.