Humana Inc.

**Earnings Performance and EPS Guidance**: Humana's President and CEO, Jim Rechtin, announced a strong financial performance for Q3 2024, exceeding expectations. The company is confident in achieving a minimum of $16 EPS for the full year 2024. However, the precise EPS for 2025 is still uncertain and will depend on future investment decisions, indicating the company is prioritizing long-term investments over immediate earnings progression.

**Medicare Advantage (MA) Membership Growth**: Humana is experiencing robust individual MA membership growth, projecting a year-over-year growth of around 5%. The growth stems from disciplined pricing strategies and successful marketing investments in their internal sales channel, which positions the company favorably against competitors who are pulling back.

**Challenges in STARS Ratings**: Humana acknowledges that improvements are needed in their STARS ratings, which are critical for Medicare reimbursements. The company is making significant investments to close care gaps and enhance clinical excellence, but there is frustration about the shortened runway to achieve desired star levels. The outcome of pending appeals related to STARS ratings could greatly impact the company’s outlook and required investments.