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The benefits expense ratio remained unchanged at 85.8%, and the operating cost ratio increased from 10.3% to 12.5%.
Humana posted an adjusted EPS of $8.67, beating the consensus of $7.67 and $6.89 a year ago.
The 26% increase resulted from better-than-anticipated medical cost trends in the company’s individual Medicare Advantage and Medicaid businesses and lower-than-anticipated administrative costs.
Guidance: Humana expects FY22 adjusted EPS of at least approximately $24.75, up from prior guidance of $24.50, versus the consensus of $24.63.
The company still maintains a $0.50 EPS COVID-19 headwind for the back half of the year.
The company reaffirms FY 2022 expected individual Medicare Advantage membership growth of approximately 150,000 to 200,000.
Price Action: HUM shares are down 1.99% at $482.50 during the premarket session on the last check Wednesday.
