Humana raises FY profit forecast on lower medical costs

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Health insurers such as Humana (NYSE:HUM) have seen spending on medical claims fluctuate during the course of the COVID-19 pandemic.

During months when cases rise, such as the Omicron-led surge earlier this year, patients and hospitals tend to put off non-urgent medical procedures, softening the blow from higher costs related to COVID-19 testing and treatment.

The company raised its full-year adjusted earnings forecast to about $24.75 per share, compared to prior guidance of $24.50.

Humana said lower medical services utilization trends and lack of COVID-19 headwind were partly responsible for the guidance raise, but included a COVID headwind in the back half of the year.

The company’s net income rose to $1.12 billion, or $5.48 per share, in the quarter ended June 30, 2022 from $738 million, or $4.55 per share, a year earlier.