Humana, Inc. has reported strong second quarter profits of $696 million, bringing its profits for the first half of the year to $1.6 billion, an increase of 14.8% from the first half of 2021. Humana also reported strong revenues of $23.7 billion for the second quarter, an increase of 14.6% from the second quarter of 2021. Humana’s earnings reports beat analysts’ expectations.
As a result of lower than expected medical costs – in other words lower payments than expected paid to providers – Humana increased its annual profit forecast to $24.75 a share. In a news release announcing the increase, Humana described its updated annual guidance as reflecting “a compelling 20 percent growth in adjusted earnings for FY 2022.”
Humana specifically pointed to lower than expected medical costs in its individual Medicare Advantage business as contributing to its increased earnings forecast, stating: “Importantly, utilization in the company’s core individual Medicare Advantage business is running favorable to expectations.” (emphasis in the original).
Unfortunately, the attorneys of Whatley Kallas, LLP are seeing health insurance companies, including Humana, deny and underpay legitimate claims of our provider clients, a practice that no doubt adds to the profits of Humana and other health insurance companies.