Company: HUM
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000049071-25-000042
Chunk: 21

Company: HUMANA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 21
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Operating cost ratio8.3%8.4%8.3%8.4%(0.1)%(0.1)%

41

Income from operations

Insurance segment income from operations increased $3 million, or 0.4%, from $763 million in the 2024 quarter to $766 million in the 2025 quarter and increased $679 million, or 40.9%, from $1.7 billion in the 2024 period to $2.3 billion in the 2025 period primarily due to the same factors impacting the Insurance segment's benefit and operating cost ratios as more fully described below. 

Enrollment 

Individual Medicare Advantage membership decreased 388,300 members, or 6.9%, from June 30, 2024 to June 30, 2025, inclusive of the decision to exit certain unprofitable plans and counties. Individual Medicare Advantage membership includes 786,000 D-SNP members as of June 30, 2025, a net decrease of 166,800 D-SNP members, or 17.5%, from 952,800 D-SNP members as of June 30, 2024.

Group Medicare Advantage membership increased 25,100 members, or 4.6%, from June 30, 2024 to June 30, 2025, consistent with expectations as we maintain pricing discipline in a competitive market.

Medicare stand-alone PDP membership increased 85,900 members, or 3.7%, from June 30, 2024 to June 30, 2025, reflecting shifting competitive dynamics. 

State-based contracts and other membership increased 190,600 members, or 13.7%, from June 30, 2024 to June 30, 2025, reflecting allocation of additional membership in Kentucky and Ohio, as well as additional membership related to the Indiana contract implemented in July 2024.

Specialty membership remained largely unchanged from June 30, 2024 to June 30, 2025.

Premiums Revenue

Insurance segment premiums revenue increased $2.6 billion, or 9.1%, from $28.1 billion in the 2024 quarter to $30.7 billion in the 2025 quarter and increased $4.8 billion, or 8.6%, from $56.4 billion in the 2024 period to $61.2 billion in the 2025 period primarily due to higher per member Medicare premiums, largely driven