Humana Inc.

2024 Financial Performance and EPS Guidance: Humana Inc. achieved adjusted earnings per share (EPS) for 2024 in line with initial guidance, reflecting nearly 5% membership growth despite elevated medical cost trends. The company reaffirmed its 2025 outlook, aiming for at least a 3% margin in individual Medicare Advantage (MA) plans, highlighting that 2025 is a critical year for margin recovery.

Management Changes: Humana introduced new key management members including Celeste Malay as Chief Financial Officer, focusing on leveraging their experiences in regulated industries to improve operational efficiency and navigate industry challenges, potentially providing fresh perspectives to drive better performance.

Challenges with Stars Ratings and D SNP Attrition: The company acknowledged challenges related to its positioning in the Dual Special Needs Plan (D SNP) space and anticipation of increased competition as CMS pushes for further integration of Medicare and Medicaid. Attrition in the D SNP membership was higher than expected, primarily due to redeterminations that varied by state, posing risks to membership stability.