Humana Inc. Faces Unexpected Medicare Funding Challenges

Humana Inc (HUM) has released an update to notify the public and investors about a regulation fd disclosure.

On January 31, 2024, the CMS released preliminary 2025 payment rates and policy changes for Medicare Advantage and Part D, with a slight decrease in average benchmark funding of 0.16%. Humana Inc. estimates this will negatively impact their benchmark funding more than expected, due to unanticipated growth rate adjustments and normalization factors proposed by CMS. Despite this, the company maintains its 2025 Adjusted EPS growth outlook, as these rates are not final and industry feedback may influence the final figures.

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For a comprehensive understanding of the announcement, you can read the full document here.