The Business of Medicare: Humana Medicare Advantage Enrollment Rose 19%

Health Care reform has not slowed down insurance company Humana, a major player in the Medicare Advantage market.

Humana’s first-quarter net income (profit) was $258.8 million, compared with $205.7 million a year earlier. Revenue rose 9.5 percent to $8.44 billion. Enrollment in its Medicare Advantage plans rose 19 percent to 1.74 million members.

Here is what the press is saying about Humana:

The Associated Press: “Humana became the latest health insurer to post strong second-quarter profit, following recent reports from such competitors as UnitedHealth Group Inc. and Aetna Inc. that also beat Wall Street expectations. Humana said its lucrative Medicare Advantage business posted double-digit enrollment growth in the quarter. Medicare Advantage plans are government-sponsored, privately run programs for seniors that offer comprehensive health coverage. …  Meanwhile, the company’s second-quarter consolidated benefit ratio — the percentage of premiums paid to cover medical claims — also improved from a year ago” (Schreiner, 8/2).

The Associated Press/Bloomberg Businessweek: Humana Inc. President and Chief Executive Michael B. McCallister “told industry analysts during a conference call to discuss quarterly earnings that Medicare Advantage remains a ‘tremendous opportunity,’ and acknowledged that he’s been surprised that more competitors haven’t ventured into the market” (8/2).

NOTE: Humana has an office in Tucson and made a big push in 2010 to increase enrollment in its HMO Medicare Advantage plan in Pima County. Humana has over 3,000 enrollees in its Pima County Medicare Advantage plans.  Secure Horizon has over 34,000 Medicare Advantage members in Pima County.

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