Humana Inc. Reports $117.8 Billion Revenue for Fiscal Year 2024, Net Income Declines

Humana Inc. reported a total revenue of $117.8 billion for the fiscal year ending December 31, 2024, marking an increase of 10.7% from $106.4 billion in 2023. The company's net income attributable to shareholders was $1.2 billion, or $9.98 per diluted share, a significant decline from $2.5 billion, or $20.00 per diluted share, in the previous year. This decrease in profitability was influenced by various factors, including charges related to value creation initiatives, impairment charges, and adjustments associated with non-consolidating minority interest investments.

The company experienced notable changes in its membership base, with approximately 16 million members in its medical benefit plans and 5 million in specialty products as of December 31, 2024. Individual Medicare Advantage membership grew by 4.7% to 5.7 million, while group Medicare Advantage membership increased by 7.1% to 545,700. However, the Medicare stand-alone prescription drug plan (PDP) membership saw a decline of 19.7%, reflecting intensified competition in that segment. Humana's exit from the Employer Group Commercial Medical Products business, announced in February 2023, also contributed to a decrease in commercial fully-insured and ASO membership.

Strategically, Humana has focused on enhancing its integrated care delivery model, which combines quality care with high member engagement and data analytics. The company has expanded its CenterWell segment, which includes pharmacy solutions, primary care, and home health services. As of December 31, 2024, the CenterWell segment generated $19.9 billion in total revenues, up 8.3% from the previous year, driven by growth in primary care services. The company also reported that approximately 71% of its individual Medicare Advantage members were in value-based relationships, indicating a shift towards more integrated care models.

Operationally, Humana's benefit ratio increased to 89.8% in 2024 from 87.3% in 2023, primarily due to rising medical costs associated with Medicare Advantage and state-based contracts. The company recorded $100.7 billion in benefits expense, reflecting a 13.9% increase from the prior year. Looking ahead, Humana anticipates a net membership decline in its individual Medicare Advantage offerings for 2025, projecting a decrease of approximately 550,000 members, while expecting modest growth in group Medicare Advantage and state-based contracts.

In terms of future outlook, Humana remains committed to its strategic initiatives aimed at improving health outcomes and reducing costs. The company has renewed all material contracts with the Centers for Medicare and Medicaid Services (CMS) for 2025, ensuring continuity in its Medicare Advantage offerings. However, the company faces challenges, including potential impacts from regulatory changes and competitive pressures in the healthcare market, which could affect its financial performance and market position moving forward.