Despite the lower earnings, Humana raised its earnings estimates for the rest of the year due to “favorable prior-year medical claims reserve development” and better prescription drug plan results, according to the news release. The health insurer also said it has acquired Metropolitan Health Networks, a primary-care focused medial services organization that coordinates care for Medicare Advantage, Medicaid and other beneficiaries, in a deal worth roughly $850 million.
For the first nine months of 2012, Humana’s profit fell 15.6 percent, from $1.22 billion last year to $1.03 billion this year. Total revenue, however, increased 6.5 percent to $29.6 billion for the first nine months of this year.
Humana also announced the transition of Chairman and CEO Michael McCallister, who will be retiring at the end of the year. Humana’s board named Bruce Broussard, Humana’s president since December 2011, as president and CEO effective Jan. 1.
More Articles on Humana:
Tenet Signs 4-Year, National Agreement With Humana
5 Largest Commercial Payors Post $3.17B Profit in 2Q
Humana’s 2Q Net Income Slips 23% to $356M
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
