Humana's Stock Plummets as Soaring Medical Costs Lead to Grim 2024 Forecast
Humana surprised Wall Street with a lower-than-expected earnings forecast, citing a spike in care use that is expected to persist through 2024, leading to a plunge in its shares. The rising costs are attributed to increased inpatient care, outpatient surgeries, and supplemental benefits, with factors including flu, COVID-19, and RSV cases. The company expects adjusted earnings of about $16 per share for the new year, significantly lower than analysts' projections, causing a 13% drop in its stock price. Rival UnitedHealth Group Inc. also faces similar struggles with cost hikes, while Elevance Health reported a better-than-expected medical cost trend.