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Humana Shares Fall as Medical Costs Overshadow Earnings Beat

  • Medical-loss ratio of 85.8% was higher than analysts expected
  • Care volumes leads to higher annual earnings forecast
Humana headquarters in Louisville, Kentucky.

Humana headquarters in Louisville, Kentucky.

Photographer: Luke Sharrett/Bloomberg

Humana Inc. shares fell after higher medical expenses than Wall Street expected overshadowed positive earnings and a modest increase in the health insurer’s forecast for the year.

The company’s medical-loss ratio, a closely watched measure of how much premium revenue is paid out for medical care, was 85.8%, higher than analysts’ forecast but in-line with the company’s expectations. Shares declined as much as 3.5% in New York trading Wednesday.