Humana Inc. Reports Significant Fourth-Quarter Loss, Warns of Impact of Rising Medical Costs

Shares of Humana and other health insurers tumble as company's 2024 earnings forecast falls short of expectations.

Humana Inc. reported a fourth-quarter loss of $591 million, a significant increase from its $71 million loss in the same period of 2022.
The health insurance company warned that higher medical costs and government regulations will negatively affect its results through 2025.
Shares of Humana and other health insurance providers such as UnitedHealth Group Inc. and CVS Health Corp. tumbled following the announcement.
Humana's forecast for 2024 earnings fell more than $13 short of average expectations, leading to a 15% drop in its share price.
The company attributes the rising costs to higher-than-anticipated inpatient utilization and an increase in non-inpatient trends.