(Reuters) -Humana Inc reaffirmed its full-year profit forecast on Wednesday, after the health insurer beat Wall Street estimates for quarterly profit aided by a better-than-expected performance of its government-backed insurance plans.
Humana’s main business is Medicare Advantage, which are government-backed plans offered by private companies for people over 65 years of age or those with certain disabilities.
The company is focused on increasing the membership of its government-backed insurance plans, as it shuts down operations of its employer-backed insurance business.
Humana said 5.9 million members were enrolled in Medicare Advantage as of the third quarter ended September, a 14.7% rise compared to a year earlier.
The company also raised its 2023 Medicare Advantage membership forecast for the second time this year, expecting to add at least 860,000 people by the end of the year.
Health insurers including Humana had earlier this year warned of a jump in medical costs, as older adults return to hospitals for elective surgeries that were delayed during the pandemic.
Humana’s benefit-expense ratio, or the percentage of payout on claims compared to its premiums, rose to 86.4% in the third quarter, lower than analysts’ estimate of 86.7%, according LSEG data.
The health insurer reported an adjusted profit of $7.78 per share for the quarter, beating analysts’ estimate of $7.16 per share.
(Reporting by Khushi Mandowara in Bengaluru; editing by Milla Nissi)
