news Humana sees growth of ‘at least’ 625,000 Medicare Advantage members this year
Humana said individual enrollments in its Medicare Advantage plans will increase by “at least 625,000” in 2023, which is shaping up to be a symbolic year for the popular privatized health plan for older Americans. .
Medicare Advantage’s growth projections were included in Humana’s fourth-quarter earnings report released Wednesday, which said it benefited in part from last year’s investments to improve its health insurance business. and included a loss of $15 million. Fourth-quarter revenue increased to $22.4 billion from his $21 billion in the year-ago quarter on growth in Medicare Advantage and higher premiums.
“Humana is pleased to start the year on a strong footing, with strong growth in individual Medicare Advantage memberships expected in 2023 to be at least 625,000 for the full year, up 13.7% year over year.” This strong membership outlook reflects quality growth, with retention more than doubling expectations and compound annual growth from 2018 to 2022 in line with industry growth. 10.4% compared to 9.7%, demonstrating the continuation of our strong track record of membership growth.”
The Medicare Advantage Plan, which makes up a large part of Humana’s business, contracts with the federal government to provide additional benefits and services to seniors, such as disease management and nurse help hotlines, vision, dental care, and more. Some even offer wellness programs.
Humana’s forecast for membership growth is based on a recent report from the Centers for Medicare & Medicaid Services showing a record of more than 30 million Americans enrolled in Medicare Advantage plans nationwide . This applies to all currently enrolled in privatized coverage sold by Humana, CVS Health’s Aetna, UnitedHealth Group, Cigna, a range of startups, community health plans, Blue Cross and Blue Shield companies, and others. Nearly half of all Medicare beneficiaries.
According to Humana, individual Medicare Advantage membership in January 2023 was 5.06 million, “reflecting net membership additions during the recently completed 2023 Annual Election Period (AEP), which will increase by December 2022.” That’s about 494,400, or an 11% increase since March 31st.”
Humana said it expects adjusted earnings per share in 2023 to be “at least $28.”