Company: HUM
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000049071-25-000057
Chunk: 19

Company: HUMANA INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 19
---
3%, from $3.3 billion in the 2024 quarter to $4.1 billion in the 2025 quarter and increased $1.5 billion, or 15.6%, from $9.5 billion in the 2024 period to $11.0 billion in the 2025 period. The consolidated operating cost ratio increased 110 basis points from 11.5% for the 2024 quarter to 12.6% for the 2025 quarter and increased 50 basis points from 10.9% for the 2024 period to 11.4% for the 2025 period primarily due to business mix changes, including within the CenterWell segment that runs a significantly higher operating cost ratio than the Insurance segment, combined with the operating leverage impact of the loss of individual Medicare Advantage membership, as well as the impact of charges associated with the value creation initiatives, primarily related to severance in connection with workforce optimization and external consulting spend. The value creation initiative charges were recorded at the corporate level and not allocated to the segments. These factors were partially offset by 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. 

Depreciation and Amortization

Depreciation and amortization decreased $37 million, or 17.6%, from $210 million in the 2024 quarter to $173 million in the 2025 quarter and decreased $97 million, or 15.4%, from $631 million in the 2024 period to $534 million in the 2025 period primarily due to decreased capital spending.

Interest Expense

Interest expense remained relatively unchanged from the 2024 quarter and period to the 2025 quarter and period.

Income Taxes

The effective income tax rate was (77.3)% and 20.1% for the three and nine months ended September 30, 2025, respectively, and 24.4% and 24.9% for the three and nine months ended September 30, 2024, respectively. The 2025 quarter and period effective income tax rate reflect the impact of a tax loss on sale of business, which exceeded the book loss. The related tax benefit is realizable via capital loss carryback.

40

Insurance Segment

 September 30,Change 20252024Members%Membership:Individual Medicare Advantage5,237,300 5,659,200 (421,900)(7.5)%Group