Humana Q3 profit boosted by 13.9% jump in Medicare Advantage enrollment

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Louisville, Ky.-based Humana reported its revenue and net income increased in the third quarter of fiscal year 2015, which was driven by strong individual Medicare Advantage enrollment.

Humana, which in July agreed to be acquired by rival health insurer Aetna, reported revenue of $13.4 billion for the third quarter of fiscal year 2015, up 9 percent from the same period a year ago.

The health insurer said individual Medicare Advantage membership increased 13.9 percent and Medicaid membership soared 24 percent in the third quarter of 2015, compared to the year prior. However, Humana saw its commercial membership fall 11.2 percent year over year. Humana said its commercial business continues to be challenged by volatility related to the start of the healthcare exchange program under the Affordable Care Act.

Humana ended the third quarter with a profit of $314 million, up from $290 million a year earlier.

"As we look to 2016, we anticipate marked improvement in our Medicare and individual commercial businesses as a result of actions taken during 2015," said Brian A. Kane, senior vice president and CFO of Humana. "However, we remain cautious with regard to our expectations around 2016 earnings growth due to the ongoing challenges in the individual commercial business and as we continue to evaluate the impact of the Medicare financial recovery process changes made during 2014."

More articles on payer issues:

California fines top insurers $600k for overstating physician networks
Anthem Q3 profit hampered by drop in ACA exchange membership
Aetna's better-than-expected Q3 raises 2015 projections

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