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The company said in a securities filing on Friday that it would reaffirm its full year insurance segment benefit expense ratio guidance of 86.3% to 87.3% but said it would be at the top end of this full-year range.
The company said this forecast was driven by higher than anticipated non-inpatient utilization trends, especially for “emergency room, outpatient surgeries, and dental services, as well as inpatient trends.”
Shares of Humana fell 3.7% on Friday. They are down 13% this year. Earlier this week, UnitedHealth Group Incorporated (NYSE:UNH) also noted higher costs because people were seeking procedures they put off during the pandemic.
Humana said it has also continued to see strong growth in individual Medicare Advantage membership, adding that “on average, new members take approximately 3 years to achieve mature profitability levels.”
It reaffirmed guidance for adjusted earnings per share this year of at least $28.25.
