Another Health Insurer Is Considering Leaving Obamacare
HumanaLurking behind the health care debate are, of course, the companies that provide health care. Though it sounds like some kind of futuristic supercontinent, Humana is actually the fourth largest provider of health care in the United States, with nearly 30 million policyholders. The company, with its headquarters in Louisville, Ky., is poised to thrive as health care reform shapes the industry. Humana brought on 2,900 new care management professionals in 2012. Though costly, the price of that and other operational solutions should be offset by other areas in which the company made a profit. For example, the flu, though bad for your respiratory system, was good for Humana's bottom line. Incremental costs from increased hospital admissions, thanks to the flu, should earn Humana $75 million for 2012 and 2013.
U.S. health insurer Humana (HUM), which is being acquired by rival Aetna (AET) reported a near 46 percent fall in quarterly profit and said it is considering exiting Obamacare individual plans in some states.
Humana’s individual business, which sells plans under the Affordable Care Act, has been a drag on results and the company said it still expects to record losses in the business in 2016.
The company said it is in the process of finalizing the sort of insurance plans it will offer in the business next year, but it is also considering a number of changes, including exiting certain states or products.
Humana’s net income fell to $234 million, or $1.56 per share, in the first quarter, from $430 million, or $2.82 per share, a year earlier, due to higher costs in its retail business.
Besides Obamacare individual plans, the business also sells Medicare Advantage plans and prescription drug plans, among others.
On an adjusted basis, Humana earned $1.86 per share.
Revenue slipped to $13.80 billion from $13.83 billion.