Humana profit drops on Medicare costs

[Joanne98]

Source: Reuters


NEW YORK (Reuters) - Humana Inc (HUM.N) said fourth-quarter profit fell 28 percent, as medical costs consumed more premium revenue than some analysts expected, and the health insurer lowered its 2009 earnings forecast for its commercial segment for employers.

Its shares fell 3.9 percent even as the company backed its overall 2009 profit forecast.

"The earnings were largely as expected but the quality of the report was disappointing," Morgan Stanley analyst David Veal said in a research note.

Net income fell to $174.1 million, or $1.03 per share, from $243.2 million, or $1.43 per share, a year earlier.

Excluding items, earnings were $1.07 per share, 1 cent ahead of the analysts' average forecast, according to Reuters Estimates.



Read more: http://www.reuters.com/article/ousiv/idUSTRE5112AR20090202

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This is the problem with for-profit healthcare. Humana is going to raise cost to sick people so they won't have to cut their dividend. This is an OUTRAGE!

[Donnachaidh]

1. That's why they and all the other for-profit companies need to be euthanize

Cut them completely out of the healthcare business. They are a CANCER on the health of the American public.

[Joanne98]

2. I agree!

[Wapsie B]

3. Yes raise costs to patients and most likely cutting care-giving staff positions.

Seems to me they need to start paring away at the top levels. But then they wouldn't be that much different than their non-profit counterparts in that respect.

[floridablue]

4. They have already raised premiums to cover this

My D Drug premium went from 22 per month to 38 per month January 1st, so someone here is just crying wolfe it seems.