LOUISVILLE, Ky. (AP) — A downturn in Humana Inc.'s second-quarter results and net income forecast for the year did not cause skittishness among industry analysts, but they sounded concerns about the health insurer's higher costs and margins from its key Medicare Advantage business.
Posting its earnings a week early, Humana on Monday pointed to higher Medicare Advantage costs and increased health care use by its plan members for a 23 percent drop in its second-quarter net income.
Jefferies analyst David Windley, in a note to investors, pointed to Humana's reliance on its Medicare Advantage business as an ongoing plus because "member growth opportunities are more robust." Medicare Advantage plans offer privately run, government-subsidized comprehensive health insurance for seniors with extras like vision or dental coverage in addition to basic Medicare coverage.
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