Humana’s net income, medical loss ratio beat industry expectations for Q2
The Humana building in Louisvile, Kentucky. Major health insurer Humana logged a net income of $588 million during the second quarter, the company announced this week. And while that’s considerably less than the $1.8 billion posted a year ago at this time, when patients were deferring care, it still beat expectations thanks in large part to falling COVID-19 treatment costs for its members.
Humana also said that “solid fundamentals” across its business lines have played a part, especially as the company continues to navigate the impacts of the coronavirus pandemic.
What helped is that non-COVID-19 medical use bounced back faster than expected during the second quarter, executives told investors this week.
WHAT’S THE IMPACT
The company believes that the pent-up demand for deferred care, while noticeable during the first and second quarters of the year, have begun to normalize, and the insurer expects this trend to continue, despite rising case counts and hospitalizations in many areas of the country.
A key metric that beat expectations was medical loss ratio, which can determine how much an insurer can spend on care. The medical loss ratio was 85.8%, significantly higher compared to the same time period in 2020.There’s uncertainty around medical usage. Humana indicated […]