Company: HUM
Filing Date: 2025-10-02
Form Type: 8-K
Source: 0000049071-25-000048
Chunk: 1

Company: HUMANA INC
Filing Date: 2025-10-02
Form: 8-K
Item: Item 7.01
Chunk 1
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 MA Star Rating thresholds into its forecasting process, the Company continues to anticipate a return to Top Quartile results for the 2027 MA Star Ratings.

The Company’s confidence in a return to Top Quartile results is supported by the solid operational progress made for the 2026 MA Star Ratings, combined with further improvements made for the 2027 MA Star Ratings. These improvements reflect a fundamental shift in the Company’s Stars program, based in strategic choices, data and analytics, and an “always-on” approach to Stars improvement.

2026 Individual Medicare Advantage Pricing and Benefit Design

Based on all information available to date, the Company remains confident in its 2026 Individual MA pricing and benefit design, including the expectation that it will double individual MA pre-tax margin in 2026 (excluding Stars), and believes it is positioned to return to membership growth in 2026.

2025 Earnings Guidance

Humana affirms its guidance of approximately $13.77 in diluted earnings per common share (“ EPS”), or approximately $17.00 in adjusted earnings per common share (“ Adjusted EPS”), in each case for the year ending December 31, 2025 (“ FY 2025”). This guidance is consistent with the guidance issued in the Company’s press release dated July 30, 2025 and subsequently affirmed in the Form 8-K filed with the Securities and Exchange Commission on August 29, 2025.

The Company has included Adjusted EPS in this current report, a financial measure that is not in accordance with Generally Accepted Accounting Principles (“ GAAP”). Management believes that this measure, when presented in conjunction with the comparable measure of GAAP EPS, provides a comprehensive perspective to more accurately compare and analyze the Company’s core operating performance over time. Consequently, management uses Adjusted EPS as a consistent and uniform indicator of the Company’s core business operations from period to period, as well as for planning and decision-making purposes and in determination of incentive compensation. Adjusted EPS should be considered in addition to, but not as a substitute for, or superior to, GAAP EPS. A reconciliation of GAAP EPS to Adjusted EPS follows:

  Diluted earnings per common share                                                                                     FY 2025 Guidance  
  GAAP (a)                                                                                                              Approximately     
  Amortization of identifiable intangibles                                                                              0.49              
  Put/call valuation adjustments associated with the Company's non-consolidating minority interest investments (b)      3.01              
  Value creation initiatives (b)                                                                                        0.44