Humana profit down 56% in Q1: 3 notes

Humana saw its net income drop in the first quarter of 2018 compared to the same period a year prior.

Here are three notes on Humana's financial results for the three months ended March 31.

1. Humana recorded GAAP consolidated revenues of $14.3 billion, up 4 percent from $13.8 billion in the same quarter of 2017. Humana said increases in its retail segment revenues, mainly in its Medicare Advantage business, led to the improvement.

2. Humana's expenses were up 12.4 percent to $13.5 billion in the first quarter of 2018, up from $12 billion in the first quarter of 2017. Humana's benefit ratio, or the amount it pays toward members' medical expenses, was 84.5 percent in the first quarter, unchanged year over year.

3. The payer ended the three-month period with a 55.9 percent drop in net income. Humana saw its net income soar to $1.1 billion in the first quarter of 2017 due to the termination of its merger agreement with Aetna. As this quarter's results don't include those gains, Humana's net income fell to $491 million.

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