Prognosis
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.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
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.