Company: HUM
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000049071-25-000042
Chunk: 19

Company: HUMANA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 19
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10.8% 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. This was partially offset by administrative cost efficiencies resulting from the value creation initiatives, net of charges related to ongoing initiatives, as well as operating leverage associated with increased revenues from the impact of the IRA as previously described. 

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Depreciation and Amortization

Depreciation and amortization decreased $34 million, or 16.0%, from $212 million in the 2024 quarter to $178 million in the 2025 quarter and decreased $60 million, or 14.3%, from $421 million in the 2024 period to $361 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 24.7% and 24.6% for the three and six months ended June 30, 2025, respectively, and 24.7% and 25.0% for the three and six months ended June 30, 2024, respectively. The year-over-year decrease in the six month period effective income tax is primarily due to reduced state tax expense.

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Insurance Segment

 June 30,Change 20252024Members%Membership:Individual Medicare Advantage5,229,300 5,617,600 (388,300)(6.9)%Group Medicare Advantage570,000 544,900 25,100 4.6 %Medicare stand-alone PDP2,427,100 2,341,200 85,900 3.7 %Total Medicare8,226,400 8,503,700 (277,300)(3.3)%Medicare Supplement444,100 339,200 104,900 30.9 %State-based contracts and other1,582,900 1,392,300 190,600 13.7 %Military services 4,588,800 5,959,200 (1,370,400)(23.0)%Commercial fully-insured — 62,200 (62,200)(100.0)%Commercial ASO — 47,000 (47,000)(100