Humana Inc., together with its subsidiaries, operates as a health and well-being company. The company operates through three segments: Retail, Group, and Healthcare Services. The Retail segment offers Medicare, and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products directly to individuals. This segment also has contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. The Group segment provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, and other supplemental health and voluntary insurance benefits; and administrative services only, and health and wellness products to employer groups. It also offers military services, such as TRICARE South Region contract. The Healthcare Services segment offers pharmacy solutions, provider services, home based services, clinical programs, and predictive modeling and informatics services to its health plan members, as well as to third parties. The company also provides closed-block long-term care insurance policies. As of December 31, 2015, it had approximately 14.2 million members in medical benefit plans, as well as approximately 7.2 million members in specialty products. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.
Humana Ups Earnings Guidance, Stock Sinks On Medicare Star Ratings Humana (HUM) on Wednesday reported strong preliminary third-quarter earnings and tried to downplay the potential impact of updated Medicare quality ratings released by the Centers for Medicare and Medicaid Services. But the health insurer's shares fell. Humana gave preliminary Q3 EPS of $3.15, above forecasts for $2.88. Humana is set to report third-quarter earnings on Nov. 4. Largely on that strong Q3 figure, the health insurer raised its full-year EPS to $9.50, above views for $9.24. In August, Human said it had expected EPS of at least $9.25. The Centers for Medicare and Medicaid Services today released updated Star quality ratings for the 2018 plan year, Humana said in a release. The government uses a star rating system to evaluate health-plan offerings. Plans with higher ratings get bonuses, plus bragging rights to tout to Medicare enrollees. That update, Humana said, showed that "the percentage of the company's July 31, 2016, membership in 4-Star plans or higher declined to approximately 37%, or 1.17 million members, from approximately 78%, or 2.15 million members, in the prior year." Humana said that decline did not account for the company's plans "to mitigate any potential negative impact of these published ratings on Star bonus revenues for 2018."
