Humana's revenue grows 26 percent as Medicare members pour in

What happened

Humana reported on Friday 6 November that its third-quarter revenue was $41.16 billion, 26 percent more than a year earlier by the desk's arithmetic, as its Medicare plans added members. ^{[1, 3]}

Pretax income was $216 million, against $134 million a year earlier. The insurance segment, which holds the health plans, lost $303 million from operations after earning $251 million in the 2025 quarter. The company raised its full-year adjusted earnings outlook, and Reuters reported it expects medical costs to stay in check. ^{[1, 4]}

Why it matters

The benefit ratio, the share of premiums paid out for members' care, was 93.7 percent in the insurance segment, against 91.1 percent a year earlier. The company had guided to 'slightly above 94 percent' and said medical and pharmacy cost trends ran in line to better than it expected. Reuters, which calls the figure the medical cost ratio, reported the same 93.7 percent. ^{[1, 2, 3, 4]}

Where the members came from

Total medical membership was 18.04 million on Wednesday 30 September, against 14.99 million a year earlier. Individual Medicare Advantage, the private plans that stand in for traditional Medicare, added about 1.21 million members since December, or 23 percent, the company said. Its stand-alone drug plans added about 1.22 million, or 54 percent. ^{[2, 3]}

Medicaid added 103,600 members, or 7 percent, largely from new programs for people eligible for both Medicare and Medicaid in Michigan, Illinois and South Carolina. Reuters reported that Humana is expanding in Medicare Advantage while rivals pull back. ^{[1, 4]}

The star ratings

Medicare's star ratings, quality scores that set bonus payments, fell for Humana's 2026 plans, and the company said that drives the decline it expects in full-year adjusted earnings. The ratings released on Thursday 8 October, which set bonuses for 2028, exceeded its goal of top-quartile results, Humana said. ^{[1, 6]}

On the call, Jim Rechtin, the chief executive, put the member-weighted rating at 4.17 and said 'The improvement that the team has driven in the Stars program over the last 2 years is truly remarkable'. CNBC reported that 95 percent of Humana's Medicare Advantage members will be in plans rated four stars or higher in 2027, up from 20 percent in 2026. ^{[5, 7]}

What settles it next

The company kept its full-year forecasts of at least $160 billion in revenue and an insurance benefit ratio of 92.75 percent, give or take a quarter point. It said it expects the fourth-quarter ratio to be just above 95.5 percent. ^{[2, 3]}

Humana holds a virtual investor update on Thursday 10 December. The sale of its minority stake in Gentiva, valued at about $900 million, is expected to close in the fourth quarter, the company said. ^{[2, 6]}

Who it reaches

Humana (HUM) is direct: the results are its own, filed on Friday 6 November. BlackRock (BLK) is adjacent: funds of its HPS Investment Partners own the majority of a new joint venture holding nearly 150 CenterWell clinics. The venture closed in October. ^{[1, 2, 8]}