Humana's Stock Tumbles on Bleak 2024 Forecast Amid Rising Medical Costs
Humana's stock plunged over 10% after issuing a bleak 2024 earnings forecast due to soaring medical costs, with adjusted earnings expected to be about $16 per share, less than half of analysts' expectations. The increase in medical costs is attributed to a surge in older adults seeking delayed procedures, impacting the broader insurance industry. Other health insurance stocks also fell, with UnitedHealth and CVS Health dropping over 6% and 4% respectively. Humana's fourth-quarter revenue beat estimates at $26.46 billion, but the company reported a loss of $591 million, largely due to higher medical expenses.