Humana Inc. Reports 8.4% Revenue Growth to $32.1 Billion in Q1 2025

Humana Inc. reported significant financial performance for the first quarter of 2025, with total revenues reaching $32.1 billion, an increase of 8.4% from $29.6 billion in the same period last year. The company's net income attributable to Humana was $1.2 billion, or $10.30 per diluted share, compared to $739 million, or $6.11 per diluted share, in the prior year. This growth in profitability was driven by an increase in premiums and services revenue, which rose by $2.3 billion, or 8.0%, primarily due to higher Medicare premiums and growth in state-based contracts.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Humana's total benefits expense increased by 5.6% to $26.5 billion, while the benefit ratio improved to 87.0% from 88.9% a year earlier. This improvement was attributed to pricing adjustments in the individual Medicare Advantage segment and favorable impacts from the Inflation Reduction Act (IRA). Additionally, the operating cost ratio increased slightly to 10.6% from 10.4%, reflecting higher administrative costs associated with the company's growth initiatives.

Strategically, Humana has focused on enhancing its integrated care delivery model, which combines quality care with high member engagement. As of March 31, 2025, approximately 3.5 million members, or 67% of individual Medicare Advantage members, were in value-based relationships, a slight decrease from 69% in the previous year. The company also reported a total membership of 14.8 million, a decline of 8.3% from the previous year, primarily due to exits from unprofitable plans and a significant drop in military services membership.

In terms of operational developments, Humana's cash and cash equivalents increased to $4.3 billion as of March 31, 2025, up from $2.2 billion at the end of 2024. The company generated $331 million in cash from operating activities, although this was a decrease from $423 million in the prior year. The increase in cash was supported by financing activities, including the issuance of $1.5 billion in senior notes, which were used to repay existing debt and for general corporate purposes. Looking ahead, Humana remains committed to its growth strategy, focusing on expanding its Medicare Advantage business and enhancing healthcare services, while navigating regulatory changes and market conditions.