Net income at health insurer Humana dropped 4.3 percent in the third quarter of 2012 compared with last year, totaling $426 million.
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.
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.
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