Company: HUM
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000049071-25-000023
Chunk: 20

Company: HUMANA INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 20
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 exit certain unprofitable plans and counties. 

Insurance segment services revenue decreased $23 million, or 8.4%, from $275 million in the 2024 quarter to $252 million in the 2025 quarter.

Benefits Expense

The Insurance segment benefit ratio decreased 190 basis points from 89.3% for the 2024 quarter to 87.4% for the 2025 quarter primarily due to individual Medicare Advantage pricing inclusive of plan exits, benefit design changes and favorable workday impacts in the 2025 quarter more than offsetting claims trend and the funding environment, as well as the change in Medicare Part D seasonality due to the IRA. These factors were partially offset by a shift in line of business mix resulting from reductions in individual Medicare Advantage membership, combined with growth in the stand-alone PDP and state-based contracts businesses, which carry a higher benefit ratio. In addition, the decrease was offset by a delayed flu season that led to a more acute period in the 2025 quarter compared to the 2024 quarter and lower favorable prior-period medical claims reserve development.  

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Operating Costs

The Insurance segment operating cost ratio decreased 10 basis points from 8.3% for the 2024 quarter to 8.2% for the 2025 quarter primarily due to administrative cost efficiencies resulting from the value creation initiatives and operating leverage associated with increased revenues from the impact of the IRA as previously described. These factors were partially offset by the operating leverage impact of the loss of individual Medicare Advantage membership.

CenterWell Segment

ChangeThree months ended March 31,Three months ended March 31, 2025 vs 202420252024$%($ in millions)Revenues:Services:Home solutions$335 $335$— — %Pharmacy solutions278 21167 31.8 %Primary care469 241228 94.6 %Total external revenues1,082 787295 37.5 %Intersegment revenues:Home solutions497 48512 2.5 %Pharmacy solutions2,566 2,617(51)(1.9)%Primary care950 92921 2.3 %Intersegment revenues4,013 4,031(18)(0.4)%Total revenues$5,095 $4,818$277 5.7 %Income from operations$392 $282$110 39.0 %Operating cost ratio91.1 %93