Humana Reports $195 Million Profit As Costs Land Within Expectations

Humana Reports $195 Million in Q3 Profits as Medical Cost Trends Stabilize

Humana reported $195 million in third-quarter profits on Wednesday, with the health insurer’s medical cost trends aligning with previous company forecasts. Like its industry peers, Humana has faced increased costs, particularly within its Medicare Advantage plans—a substantial component of the company’s business.

Medicare Advantage plans are government-contracted and offer seniors additional benefits and services, such as disease management, nurse helplines, vision, dental care, and wellness programs. To improve performance, Humana exited certain “unprofitable” plans and counties during the quarter.

“Our 3Q25 insurance segment benefit ratio of 91.1% is in line with our guidance of ‘just above 91%,’” Humana stated in prepared management remarks released alongside its earnings report. The benefit expense ratio, which is the percentage of premium revenue allocated toward medical costs, was 91.1% compared to 89.9% in the same quarter last year.

Despite the elevated expense ratio, Humana’s net income dropped to $195 million, or $1.62 per share, down from $480 million, or $3.98 per share, a year ago. However, revenue increased to $32.6 billion, up from $29.4 billion in the prior-year period.

Humana attributed some stability to less volatile industry cost trends over the past year, reaffirming its full-year 2025 adjusted earnings per share outlook of “approximately $17.00” and maintaining insurance segment benefit ratio guidance of 90.1% to 90.5%. This outlook, Humana noted, is “supported by solid execution and results.”

The company also reported improvements in its Medicare Advantage enrollment, reaching over 5.2 million individual enrollees by the end of the third quarter. “We now anticipate a FY 2025 decline of approximately 425,000 Individual Medicare Advantage (MA) members, improved from our previous expectation of a loss of up to 500,000, driven by stronger retention and better-than-expected sales,” the company said.

Meanwhile, Humana’s CenterWell healthcare services business continues to expand, reporting growth of 56,600 patients, or nearly 15%. “CenterWell Pharmacy continues to drive strong growth across payor-agnostic offerings, with increased Specialty volumes and strong Direct-to-Consumer growth, both exceeding previous expectations in 3Q25,” the company said.

Looking forward, Humana executives expressed confidence in the company’s strategy and outlook. “Our strategy of putting the consumer at the heart of everything we do is working, with solid year-to-date performance and strong momentum heading into the Annual Election Period,” said President and CEO Jim Rechtin. “We feel positive about the direction we’re headed and the value we are creating for our members, patients, and investors.”
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