Health insurer Humana has announced a $2 billion share repurchase authorization to replace its previous $1 billion buyback plan.
Of the $1 billion plan, $782 million was outstanding following $118 million share repurchases to date in the third quarter. The new $2 billion buyback program will run through 2016.
Humana has experienced a drop in income this year due to higher operating costs. Cost drivers include the non-deductible health insurance industry fee mandated by Patient Protection and Affordable Care Act, acquisition costs for new Medicare Advantage members, and investment spending on the health insurance exchanges and new state-based contracts. For the six months ended June 30, Humana's net income dropped by 20.3 percent year-over-year to $712 million.