U.S. strength insurer Humana reported a better-than-expected quarterly profit and raised its full-year profit augur on Wednesday, as it signed up thousands more for its government-backed Medicare Advantage concern.
Membership for Medicare Advantage’s individual plans, which provide protection to the elderly and disabled, rose 6 percent to 3 million in the first quarter. Governor or other group-based Medicare Advantage plans added 14 percent more associates.
The fast-growing and profitable Medicare Advantage plans account for about a third of Medicare fellows, making it an important growth area for private insurers.
“We experienced steady Medicare Advantage enrollment growth … with early clear-cut indicators of medical utilization allowing us to raise guidance for the year,” Chief Monetary Officer Brian Kane said.
The health insurance giant has been distributing to move deeper into patient care and drug retail, best to a wave of consolidation in the sector.
Last week, Humana paired up with two private-equity houses to buy privately held Curo Health Services for about $1.4 billion, the bundle’s second such deal in five months.
Net income fell to $491 million, or $3.53 per ration, in the quarter ended March 31, from $1.12 billion, or $7.49 per apportion, a year earlier.
Last year’s results included a gain agnate to its terminated merger agreement with Aetna Inc.
Excluding items, the concern earned $3.36 per share, beating analysts’ average estimate of $3.19, be at one to Thomson Reuters I/B/E/S.
The company said its adjusted benefit expense relationship the percent of premiums spent on claims improved to 84.9 percent from 85.2 percent a year earlier.
Takings rose nearly 4 percent to $14.28 billion.
The company now expects full-year mediate earnings of $13.70 per share to $14.10 per share, compared with its preceding forecast of $13.50 to $14.00 per share.
Humana’s shares, up 19 percent this year, were 1.6 percent maximum in light premarket trading.