Humana's profit up 38%, revenue boosted by Medicare Advantage business

Humana reported a 38 percent increase in profit for the third quarter of fiscal year 2016 to a total of $940 million, up from $681 million in the same period last year.

The Louisville, Ky.-based payer also reported a 2.5 percent increase in revenue from the same period in FY 2015 to a total of $13.7 billion. Increased profit and revenue were driven by gains in Humana's healthcare service and Medicare Advantage arms.

The insurer reported individual Medicare Advantage enrollment of 2.8 million policyholders for Q3 ending Sept. 30. The enrollment represents a 3 percent increase from the insurer's 2.7 million individual Medicare Advantage members in the same period of FY 2015. However, enrollment in its individual commercial plans totaled 726,200 in Q3, down 25 percent from Q3 last year.

"We continue to meet or exceed our initial 2016 earnings expectations across our portfolio of businesses, with the exception of our individual commercial business," President and CEO Bruce Broussard said in a prepared statement. "We attribute this over-performance to the effectiveness of our clinical programs and management's top priority of operational execution notwithstanding the elongated regulatory review of the Aetna transaction."

Humana's earnings per share in Q3 increased 41.3 percent from the same period in FY 2015 to $3.18, up from $2.25, respectively. The payer raised its full-year EPS guidance to $9.50. 

Year-to-date, Humana reported a profit of $2.2 billion.  

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