Humana's Stock Tumbles as Medical Costs Surge and Profit Goals Ditched

Humana's stock is plummeting after the company issued a disappointing 2024 guidance, with adjusted earnings expected to be $16 per share, well below analysts' expectations of about $29. The sharp rise in Medicare Advantage medical costs has significantly impacted Humana and other managed care stocks. The company also reported a widening loss in its fourth quarter, attributing it to increased medical costs and higher inpatient utilization. This news has also affected other insurers such as UnitedHealth, Cigna, and CVS.